According to the White House, under President George W. Bush Administration, the results of the President’s tax relief actions were almost instantaneous. The purpose of the EGTRRA was to minimize the tax affliction/burden on American families and small business owner to stimulate savings, investments, and promote job creation.
In the fourth quarter of 2001, the economy returned to growth and continued to grow for the next consecutive quarters. It was reported that the economy grew at 7.5 percent above inflation during the third quarter of 2003 – the highest since 1984. The President's tax relief reduced the marginal effective tax rate on new investment, which encouraged additional investment and, in the long-term, higher wages for workers.
In the fourth quarter of 2001, the economy returned to growth and continued to grow for the next consecutive quarters. It was reported that the economy grew at 7.5 percent above inflation during the third quarter of 2003 – the highest since 1984. The President's tax relief reduced the marginal effective tax rate on new investment, which encouraged additional investment and, in the long-term, higher wages for workers.