What’s happened to all that “supply-side” tax-cut mojo George W. Bush and company used to talk so glowingly about?
Cut taxes and the economy will grow by leaps and bounds, they said. In fact, it will grow so much that the tax cuts will actually pay for themselves, they said.
Well, they cut taxes — a whopping $1.3 trillion worth since 2001 — and the economy hasn’t exactly been unleashed. Not with housing prices swirling the bowl, credit squeezed, jobs being lost, gas prices through the roof, food and milk prices following suit, incomes stagnant and the federal debt mounting astronomically.
In fact, if you count the interest we’ll have to pay on the debt the nation has run up since Bush cut taxes in 2001 and 2003, the tab is an astounding $3.9 trillion through 2018.
Voodoo comes to mind.
The truth is, tax cuts only affect the economy around the margins. The global economy is just too big and too complex for taxes cut in Washington to have much impact. Ronald Reagan cut taxes (and then raised them, but netted out at an overall reduction) and the economy grew. But Bill Clinton raised taxes and the economy grew even faster for years, before slowing. Bush cut taxes and the economy grew modestly and then tanked — big time.
What’s really important is that Washington collect enough in taxes to cover what it spends on services for the American people. Clinton did. Bush didn’t.
Comments (2)
In your editorial, you mention that Clinton collected enough in taxes to run the government, but Bush did not. I'm sure you enjoy getting your digs into the President.
You fail to mention anywhere, however, the impact of Congress. The "Bush" tax cuts worked. What did not work was the incessant spending by Congress, both Republician and Democratic controlled.
Clinton was able to collect enough to cover what the government spends, partly through massive reductions in military spending in the 90's. Cuts that have come back to hurt us.
Granted that the war on terror is costly, however this is only part of the massive outlays by a Federal goverment run amuck.
The problem with Washington is that it spends far too much money. According to the U.S. Census, as reported by the Heritage Foundation (Households From U.S. Bureau of the Census, Outlays from FY 2009 Historical Tables, Budget of the United States Government, Table 8.1.), total Federal spending per household amounted to a wopping $23,494.
Tell me something. Do you receive $24,000 in services from the Federal government? If you believe you are getting good value, I have a suggestion. Write a check to the IRS to cover what you think your fair share in taxes should be.
But leave my tax cuts alone. I pay enough, and I do not get anything near what I pay in return. The Federal government can learn to live on a reduced budget, just like all of us must do.
with Bush-Cheney it's DOO-DOO ECONOMICS. They flushed our economy DOWN THE TOILET and poured all our tax money into pockets of greedy war industry, big oil, corrupt corporate pals.
anything goes, with Republicans in charge of DEREGULATING GREED.