As the economy begins to recover from the Great Recession, policymakers must confront the next fiscal challenge: the long-run federal deficit. The first opportunity to do so is the impending expiration of the 2001 and 2003 tax cuts: full extension of all of the cuts would increase the deficit by $3.7 trillion over the next decade. The president proposes to cut that cost by allowing some of these tax cuts to expire on schedule. New estimates from the Tax Policy Center illustrate the tradeoffs between deficit reduction and the impact on taxpayers of letting specific tax cuts to expire.