“There’s no evidence whatsoever that the Bush tax cuts actually diminished revenue…”– Senate Minority Leader Mitch McConnell (R-KY)
Uh… what? Okay. Let’s take the leader at his word, and assume that the George W. Bush tax cuts of 2001 and 2003 had no impact on declining federal revenues. Let’s all pretend we’re economists who champion the tax cut as the magic tool, and the impetus to achieve financial stability and growth. As an economist then, try to explain these numbers:
The new CBO data show that changes in law enacted since January 2001 increased the deficit by $539 billion in 2005. In the absence of such legislation, the nation would have a surplus this year. Tax cuts account for nearly half — 48 percent — of this $539 billion in increased costs.
Take a look at the chart below to see how the figures look:
The Bush administration vigorously defended those tax cuts, saying they provided the necessary stimulus for the economy. What they did however, was ratchet up the deficit between 2001 and 2004. And in the coming years, the cost of the unpaid tax cuts will balloon the deficit even further.
Need further proof of the economic lunacy McConnell and the GOP are espousing? Republicans, who lament all this terrible spending Democrats are engaging in–and who pride themselves on fiscal restraint and deficit reduction–plan on adding an additional three trillion dollars to the deficit by extending those same Bush tax cuts that ballooned the deficit in the first place!
This is hardly the mantra of a party with sound economic theories. In fact, it’s downright stupefying. The decline of revenue is a direct result of the government taking in less money and heightened spending on defense during the Bush administration. And to suggest that tax cuts pay for themselves… well that might just be criminal. So they fight unemployment benefits– and call them the scourge that will explode the deficit– but have no compunction about detonating it themselves with unpaid for tax cuts.
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