10 myths about the "Bush" tax cuts

Discussion in 'Economy' started by jreeves, Aug 2, 2008.

  1. jreeves
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    jreeves Senior Member

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    Ten Myths About the Bush Tax Cuts
    The Democratic majority in the U.S. House of Rep*resentatives must decide whether to write a budget extending, expiring, or repealing the Bush tax cuts. These tax cuts have provided a convenient scapegoat for the nation's budget and economic challenges. Despite a 42 percent spending increase in 2001, critics charge that the tax cuts have starved popular pro*grams. Despite surging economic growth and 5 million new jobs since 2003, critics also charge that the tax cuts have not helped the economy. Finally, despite making the income tax code more progressive, critics charge that the tax cuts have widened inequality.

    Nearly all of the conventional wisdom about the Bush tax cuts is wrong. In reality:

    The tax cuts have not substantially reduced cur*rent tax revenues, which were in fact not far from the 2000 pre–tax cut baseline and over the 2003 pre–tax cut baseline in 2006;
    The increased child tax credit, 10 percent tax bracket, and fix of the alternative minimum tax (AMT) reduced tax revenues much more than most of the "tax cuts for the rich";
    Economic growth rates have more than doubled since the 2003 tax cuts; and
    The tax cuts shifted even more of the income tax burden toward the rich.
    Setting optimal tax policy requires governing with facts rather than popular mythology, which is why it is important to set the record straight by debunking 10 myths about the Bush tax cuts.

    Ten Myths About the Bush Tax Cuts—and the Facts

    Myth #1: Tax revenues remain low.
    Fact: Tax revenues are above the historical average, even after the tax cuts.

    Myth #2: The Bush tax cuts substantially reduced 2006 revenues and expanded the budget deficit.
    Fact: Nearly all of the 2006 budget deficit resulted from additional spending above the baseline.

    Myth #3: Supply-side economics assumes that all tax cuts immediately pay for themselves.
    Fact: It assumes replenishment of some but not necessarily all lost revenues.

    Myth #4: Capital gains tax cuts do not pay for themselves.
    Fact: Capital gains tax revenues doubled following the 2003 tax cut.

    Myth #5: The Bush tax cuts are to blame for the projected long-term budget deficits.
    Fact: Projections show that entitlement costs will dwarf the projected large revenue increases.

    Myth #6: Raising tax rates is the best way to raise revenue.
    Fact: Tax revenues correlate with economic growth, not tax rates.

    Myth #7: Reversing the upper-income tax cuts would raise substantial revenues.
    Fact: The low-income tax cuts reduced revenues the most.

    Myth #8: Tax cuts help the economy by "putting money in people's pockets."
    Fact: Pro-growth tax cuts support incentives for productive behavior.

    Myth #9: The Bush tax cuts have not helped the economy.
    Fact: The economy responded strongly to the 2003 tax cuts.

    Myth #10: The Bush tax cuts were tilted toward the rich.
    Fact: The rich are now shouldering even more of the income tax burden.

    In fact, "Bush's" tax cuts increased tax revenues....go figure
     
    Last edited: Aug 2, 2008
  2. Chris
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    Chris Gold Member

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    According to Government - Historical Debt Outstanding - Annual 1950 - 1999, the debt at the end of the 1980 fiscal year, on 9/30/1980, was $907,701,000,000. On 9/30/1981, it was $997,855,000,000. Averaging it out over the year gives a debt of $246,997,260.27 per day.

    Reagan took office 112 days later on January 20, 1981. The debt on that date could be estimated as $907,701,000,000 plus 112 x $246,997,260.27, or $935,364,693,151.

    Bill Clinton was the only president to slow the rate of the accrual of debt since the current out-of-control spending began with the Borrow and Spend Republicans in 1981.

    The final amount of the senior Bush debt was $4,174,218,594,232.91 (according to Debt to the Penny (Daily History Search Application)), and Clinton took office on 1/20/1993. Bill Clinton saw $1,553,558,144,071.73 added to the national debt during the eight years of his presidency.

    However, from the start of fiscal year 1994 (7 months after Clinton took office), until the start of fiscal year 2002 (7 months after Bush took office), the amount of money paid toward interest on the existing Federal debt was $2,767,282,794,374.59 (Government - Interest Expense on the Debt Outstanding).

    Therefore, no amount of the national debt is attributable to Bill Clinton - his policies of higher taxes and reduced spending actually simultaneously reduced the debt and brought about the strongest economy since World War II, despite the fiscal disaster left in the wake of Reagan and the first Bush.

    That means that Ronald Wilson Reagan, George Herbert Walker Bush, and George Walker Bush's borrow-and-spend Republican administrations oversaw and approved almost all of the national debt, except for as much as $935,364,693,151.00.
     
  3. jreeves
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    jreeves Senior Member

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    :lol: Your a broken record tonight aren't you. I would do that too, if all I had to rely on were lies. Again, the Democratic Congress passed and appropriated every single dollar of debt under the Reagan Presidency.
     
  4. Chris
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    Chris Gold Member

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    The Republicans voted in lockstep for Reagan's budget and were joined by a few Southern (Democrats in name only). It was Reagan's fantasy, supply side economics.

    Even more interesting is that Reagan's budget director, David Stockman, admitted that the tax cuts were a "trojan horse" to lower taxes for the rich.

    http://en.wikipedia.org/wiki/David_Stockman
     
    Last edited: Aug 3, 2008
  5. jreeves
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    jreeves Senior Member

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    The Democrats were the majority party, they controlled all spending. They didn't even have to give tax cuts a vote, for example see Pelosi holding up offshore drilling by not allowing a floor vote....
     
  6. jreeves
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    jreeves Senior Member

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    Nice hijack btw what does a Democratic Congress creating deficits have to do with....

    The "Bush" tax cuts producing higher tax revenue??
     
  7. editec
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    editec Mr. Forgot-it-All

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  8. jreeves
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    jreeves Senior Member

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    Last edited: Aug 4, 2008
  9. midcan5
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    midcan5 liberal / progressive

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    Ten facts about Bush's tax breaks for the corporations and the wealthy:

    Their impact has been negative, creating enormous deficits that make America weaker as a nation, and create a burden on future generations, while allowing the infrastructure our nation to deteriorate, and the gap between rich and poor to match a third world nation.

    Repeat above 9 more times.

    CEPR - America Since 1980: A Right Turn Leading to a Dead End
     
  10. jreeves
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    jreeves Senior Member

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    Do you have numbers to show how the wealthy actually paid less taxes or is this just more babble from the message board clown?
     

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