Since 2001 Congress has passed a major tax bill almost every year. Most have reduced taxes significantly and, since they were not accompanied by spending cuts, the resulting deficits have also increased the national debt. . . . The long-term effect of the 2001-2006 tax cuts on the distribution of income will depend on how they are paid for, but their immediate effect has been skewed in favor of those with high incomes. In 2006, for example, the tax cuts are equivalent to 2.5 percent of after-tax income for the middle quintile of the income distribution compared with 4.1 percent of income for those in the top quintile. Households in the bottom quintile receive a benefit of 0.3 percent of income. For taxpayers in the top one percent, the benefits are scheduled to increase even more as additional cuts — primarily to the estate tax — phase in between now and 2010. Compared to pre-EGTRRA law, taxpayers in the top one percent will enjoy a 5.4 percent increase in after-tax income in 2006 and a 6.7 percent increase in 2010.