Quote:
Originally Posted by SuckOnThis
Bush cut taxes so there is less revenue.
|
Not according to this article from the Washington Times:
"The truth is that Mr. Bush’s deficits were the product of spending, not tax cuts. In fact, Mr. Obama could learn an important lesson for his own economic plan by studying Mr. Bush’s two very different attempts at tax-cutting.
What the United States needed then (and needs now) was to stimulate investment, not consumption.
By 2003, Mr. Bush grasped this lesson. In that year, he cut the dividend and capital gains rates to 15 percent each, and the economy responded. In two years, stocks rose 20 percent. In three years, $15 trillion of new wealth was created. The U.S. economy added 8 million new jobs from mid-2003 to early 2007, and the median household increased its wealth by $20,000 in real terms.
But the real jolt for tax-cutting opponents was that the 03 Bush tax cuts also generated a massive increase in federal tax receipts. From 2004 to 2007, federal tax revenues increased by $785 billion, the largest four-year increase in American history. According to the Treasury Department, individual and corporate income tax receipts were up 40 percent in the three years following the Bush tax cuts. And (bonus) the rich paid an even higher percentage of the total tax burden than they had at any time in at least the previous 40 years. This was news to theNew York Times, whose astonished editorial board could only describe the gains as a “surprise windfall.”
Unfortunately, Mr. Bush allowed Congress to spend away those additional tax revenues. The fact is that the increase in tax revenues that flowed from the ‘03 tax cuts could have paid for the wars in Afghanistan and Iraq and then some but for rampant discretionary domestic spending. "
http://www.washingtontimes.com/news/...deral-revenue/
I think that Pres. Obama would be VERY happy to have the results Bush did from 2003 to 2007. I know that I and many others made a lot of money in those "Bush years"