What is the tax multiplier

Reference no: EM133630077

Question: In 2001, Congress passed the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) and President George W. Bush signed it on June 7. In addition to significant cuts in income tax rates, the EGTRRA provided for one-time tax rebate checks of $300 and $600, with tax rebate payments roughly totaling $38 billion. Economists later found that about two-thirds of the tax rebates were spent. What is the tax multiplier? In 2001, Congress passed the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) and President George W. Bush signed it on June 7. In addition to significant cuts in income tax rates, the EGTRRA provided for one-time tax rebate checks of $300 and $600, with tax rebate payments roughly totaling $38 billion. Economists later found that about two-thirds of the tax rebates were spent. What is the tax multiplier?

Reference no: EM133630077

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