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Bush Tax Cuts Worked

The Bush Tax Cuts Raised Revenues and Stimulated Growth
By Richard Leonetti,

There were two tax cuts. The smaller began in mid 2001 and was phased in over time. The larger came in mid 2003. The effects were quite dramatic. By July of 2004 GDP growth had jumped from 1.8% to 5.4%, business investment jumped over 10 times and employment growth was also up a factor of 10. The good news was that supply side economics really worked. Tax revenues increased steadily from 2003 right up to the present as the table below shows:

Total Federal Revenues in Billions
2000……….$2,025
2001……….1,991
2002……….1,853
2003……….1,782
2004……….1,880
2005……….2,153
2006……….2,407
2007……….2,568
2008 est. 2,521 before new rebates

The deficit grew right along because Congress let the spending grow even faster.

To kill the tax cuts, that is greatly raise taxes as the two Democratic candidates are suggesting, can be expected to have the opposite and dramatic results of less GDP growth, less business investment, higher employment and less total revenue. This would really put pressure on Congressional spending and a much faster growing deficit.

Be careful what you wish for.

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