While President Obama insists the Bush tax cuts caused the recession and record deficits, his own economists say otherwise.
He might want to consult their data for the truth.
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 . . . .
Perhaps the most impressive statistic appears on Page 412,
one that undercuts Obama's core argument against continuing the Bush tax cuts.
The post-tax-cut surge in economic growth and tax revenues
helped drive down the deficit from 3.5% of gross domestic product in 2004 to
2.6% in 2005, to 1.9% in 2006 and to a manageable 1.2% in 2007.
Based on Bush fiscal policies, the nonpartisan Congressional
Budget Office projected budget deficits of 0.7% to 1.5% of GDP for the years
2008 through 2011. The CBO even predicted surpluses for the subsequent years
through 2018.
Read the full article at IBD: http://news.investors.com/ibd-editorials-perspective/113012-635352-bush-tax-cuts-did-not-cause-deficits.htm#ixzz2DxV2pIQk
No comments:
Post a Comment