How is any tax cut, gov’t program or anything like that “permanent” if a new budget has to pass every year?

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How is any tax cut, gov’t program or anything like that “permanent” if a new budget has to pass every year?

In: Economics

The budget doesn’t change tax law. The budget just determines how to spend the money that was earned through taxes.

Still, in the case of a “permanent tax cut”, it’s only permanent in that it does not automatically expire. Another law can always be passed to undo the previous “permanent” law.

The reason we call them permanent is mostly just because there have been plenty of temporary tax laws passed in the past. Laws that would only stay in force for a number of years, then require a new bill to be passed that extends them periodically (or permanently).