When the WH economists know that Bush Tax cuts are not responsible for deficits? Here is the pertinent section:
Turn to Pages 411-413 of his 2012 Economic Report of the President, published by the Council of Economic Advisers. They show that “the math,” as Obama is wont to say, in fact does add up for tax cuts.
After President Bush in late May 2003 signed the largest tax cut since President Reagan — including dropping the top marginal rate to 35% from 39.6% — government receipts from individual income taxes rose from $793.7 billion to a peak of $1.16 trillion in 2007, when the mortgage crisis began, a 47% jump.
Stronger economic growth expanded the tax base and brought in so much revenue that Bush more than halved the deficit over that period. The budget gap plunged to $160.7 billion from $377.6 billion, according to the president’s report.
Below is the graph from this report. It leaves no room for doubt that the Bush Tax cuts not only increased government revenue, but that the annual deficits where going down because of that.
The question begs to be asked why the class warriors, like the commenters here that have been arguing otherwise on another post, despite many people providing this evidence, pretend otherwise? Note that the deficits do not jump again until the mortgage crisis starts, and then it is also important to point out that spending, which originates from the US House of Representatives, was controlled by the democrats whom owned the house.
Anyone that argues that tax cuts reduce government revenue is not arguing out of good faith. In every instance where the feds cut taxes, Kennedy, Reagan, and GWB, government ended up collecting more money. That happened because the greedy capitalists, from the stinking rich to the guy with a cool small business idea, put their money to work – they wanted to make more – and the economy took off like a bat out of hell.
So ask yourself this: why would these class warriors be so hell bent on forcing the issue of hiking taxes, during an anemic economy that despite all their efforts remains so and promises to only get worse of all cases, knowing these details? What’s the logic behind this? When every economist worth their salt says tax cuts produce more revenue and grow the economy, wouldn’t you expect the people in charge, especially if they really want to fix the economy, want to do more of that? And when stimulus after stimulus fails, wouldn’t the Keynesians be forced to rethink their nonsense? More importantly, why do democrats want to keep things as chaotic as they have made them when they know what we need right now the most is stability?
The current policy the left wants clearly will bring more pain, and yet, that’s what they are hell bent on giving us more off. Ask yourself why. Is it just ideological? Or is there more?