Tax Cuts Clearly Explained

Linto entire article: American Thinker on the Obama Tax Packagek
by Randall Hoven

Democrats are arguing to keep something they said never existed.

  1. According to the Congressional Budget Office, the entire package, as currently proposed in the Senate, would add $858 billion to the 2011-2020 deficit. 
  2. Of that $858 B, about $544 B comes from keeping current tax rates; the rest comes from the new goodies unrelated to the Bush rates.
  3. The CBO calculates future revenues under the assumption that tax rates have zero effect on the behavior of investors, consumers, employers, etc.
  4. “(T)op Democrats say we must keep the Bush tax rates or the recession resumes.
  5. Pres. Obama says that “‘economists from all across the political spectrum agree’ on that.  I believed he polled the same economists who said his stimulus would keep the unemployment rate below 8%.”
  6. As a matter of record, the final Bush tax rates passed Congress in mid-2003, shortly after Republicans retook the Senate. 
    • From August 2003 to December 2007, over eight million net new jobs were created;
    • real GDP grew almost 3% per year. 
    • At that same time, federal revenues increased by 2.3% of GDP ($785 B), putting revenues above the average level of 1960-2000, the forty years before Bush. 
    • Unemployment fell to 4.4%,
    • and the deficit fell to 1.2% of GDP.  Such was the catastrophe of four years of Bush’s tax rates and Republican-written federal budgets.

Posted on December 14, 2010, in Budget, Fiscal Responsibility, Income Redistribution, Tax Increase. Bookmark the permalink. Leave a comment.

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