The 1997 Budget Deal - What It Means to Taxpayers
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The Taxpayer Relief Act of 1997 is important more as a political statement than for its economic impact. As the first major tax cut since 1981, it marks the end of the paralysis in fiscal policy that resulted from the rise of large and persistent budget deficits in the 1980s. The legislation did not seek to make major changes in tax policy and did not do so. Its economic impact is likely to be minimal.
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