Were the Bush Tax Cuts Good for Growth?

[KissMy]

Bullshit.

Remember your meme that WWII saved the US economy and not the new deal?

You cant even keep the republican lies straight

The WWII war did not save the economy. The tax cut in 1946 & the baby boom saved the economy. The Kennedy & Reagan tax cuts also created enormous booms. The high taxes imposed on this country by you Communist in 1918 caused the Great Depression. There was never a Great Depression in this country prior to the federal reserve, taxes & regulations.

 

[AquaAthena]

If Obama caves to his base and Pelosi, and decides to change his mind on the tax cuts. you will REALLY see just how good the Bush tax cuts were, for the economy.

 

[FireFly]

Tax cuts do stimulate just like interest rate cuts & regulation cuts. Like most stimulus it wears off after a while & may lead to other problems like bubbles & inflation. In order to keep the economy going you must have sound economic fundamentals & foreign policy.

 

[william the wie]

I like it! a 100% dedicated tax system.

We could end all the debate over entitlements by allowing them all and making them voluntary agreements between a citizen and a GOVERNMENT CORPORATION.

Libertarian paternalism with opt out has a large body of literature with Michael Shermer being one of the better known names. Scandinavia has been experimenting with it at the margins (organ donation in Denmark seems to be the most successful) and seems to work well.

I would add infrastucture to the list but that could be a function of the states.

The problem tho is that, this being the economics forum, is that states with powerful central governments have huge advantages when it comes to cultivating industry. And industry is the key to defense and wealth creation. The two core missions of government.

Well infrastructure is logistical train which is why the army corps of engineers handles it.

In the above two quotes you have the reason why libertarianism has never been tried, anywhere anytime. It is just too stupid.

Well, maybe at the hunter/gatherer level.

Sticking with the same program for two centuries, secure in the knowledge that the pre-revolutionary French Philosophes figured it all out is bright? Sure thing, good thing for you that we are still in the 18th century.

 

[Toro]

Bullshit.

Remember your meme that WWII saved the US economy and not the new deal?

You cant even keep the republican lies straight

The WWII war did not save the economy. The tax cut in 1946 & the baby boom saved the economy. The Kennedy & Reagan tax cuts also created enormous booms. The high taxes imposed on this country by you Communist in 1918 caused the Great Depression. There was never a Great Depression in this country prior to the federal reserve, taxes & regulations.

The boom during WWII was much bigger than the expansions under Reagan and Kennedy.

In fact, the expansions under Reagan and Kennedy look like standard post-war expansions.

 

[Toro]

Here is another article on the OP.

What impact did the Bush tax cuts have on economic growth?

The evidence is not favorable. For example, according to this Census report (see table A1), median household income in 2007, adjusted for inflation, was lower than it was in 2000. And as the non-partisan Center on Budget and Policy Priorities reports, based upon data from the Bureau of Labor Statistics, employment growth was particularly weak, “with employment and wage and salary growth … lower than in any previous post-World War II expansion. Employment grew at an average annual rate of only 0.9 percent from November 2001 to September 2007, as compared with an average of 2.5 percent for the comparable periods of other post-World War II expansions. In addition, real wages and salaries grew at a 1.8 percent average annual rate in the 2001-2007 expansion, as compared with a 3.8 percent average annual rate for the comparable periods of other post-World War II expansions.”

Thus, there is little evidence to support that the Bush tax cuts had a significant effect on growth. In addition, contrary to the argument that the tax cuts would pay for themselves being made at the time the tax cuts were enacted, the deficit ballooned as a result of the tax cuts.

Did the Bush Tax Cuts Lead to Economic Growth? - CBS MoneyWatch.com

 

[Zander]

I don't want to sound flippant. but who cares?? Seriously, it is our money not the government's.

I believe the more important questions are: why does the government spend every penny they collect and more, regardless of tax rates? Why is the fed gov't unable to collect more than 18-19% of GDP regardless of tax rates? What level of taxation is fair? Is 35% of my income not enough? Should the government really take 50% of all that I earn above a certain amount?? What is my incentive to earn more income if the incremental income I work so hard to earn is confiscated by incompetent boobs and spend on more entitlements?

I am taxed enough - especially when I look at all the taxes and fees government is taking: fed income tax, state income tax, Social Security and Medicare (employee half and employer!) ,property taxes, car taxes, fees for every utility, gas tax, sales tax....it is at least 50% of my income.

Tax rates are not the problem, spending is. Cut spending. Cut entitlements. Cut defense. Cut it all. Do it now.

 

[Paulie]

I don't want to sound flippant. but who cares?? Seriously, it is our money not the government's.

I believe the more important questions are: why does the government spend every penny they collect and more, regardless of tax rates? Why is the fed gov't unable to collect more than 18-19% of GDP regardless of tax rates? What level of taxation is fair? Is 35% of my income not enough? Should the government really take 50% of all that I earn above a certain amount?? What is my incentive to earn more income if the incremental income I work so hard to earn is confiscated by incompetent boobs and spend on more entitlements?

I am taxed enough - especially when I look at all the taxes and fees government is taking: fed income tax, state income tax, Social Security and Medicare (employee half and employer!) ,property taxes, car taxes, fees for every utility, gas tax, sales tax....it is at least 50% of my income.

Tax rates are not the problem, spending is. Cut spending. Cut entitlements. Cut defense. Cut it all. Do it now.

Rant of the year!

 

[william the wie]

I don't want to sound flippant. but who cares?? Seriously, it is our money not the government's.

I believe the more important questions are: why does the government spend every penny they collect and more, regardless of tax rates? Why is the fed gov't unable to collect more than 18-19% of GDP regardless of tax rates? What level of taxation is fair? Is 35% of my income not enough? Should the government really take 50% of all that I earn above a certain amount?? What is my incentive to earn more income if the incremental income I work so hard to earn is confiscated by incompetent boobs and spend on more entitlements?

I am taxed enough - especially when I look at all the taxes and fees government is taking: fed income tax, state income tax, Social Security and Medicare (employee half and employer!) ,property taxes, car taxes, fees for every utility, gas tax, sales tax....it is at least 50% of my income.

Tax rates are not the problem, spending is. Cut spending. Cut entitlements. Cut defense. Cut it all. Do it now.

Disagree at the margin.

Some things such as the Fed, FHA and the GSEs should be eliminated in their entirety.

Other things should be cut overtime such as index SS and Medicare to life expectancy and then push for greater life expectancy and health.

Other things should be spent differently. Get better transport of troops and equipment and relocate the troops to US soil. Pumping up other people's GDP with US tax dollars is a greater indirect expense than the defense budget.

Let the UN or other international bodies outlaw the use of food subsidies that reduce food output. That is a twofer that would reduce spending and encourage export growth.

 

[loosecannon]

Bullshit.

Remember your meme that WWII saved the US economy and not the new deal?

You cant even keep the republican lies straight

The WWII war did not save the economy. The tax cut in 1946 & the baby boom saved the economy. The Kennedy & Reagan tax cuts also created enormous booms. The high taxes imposed on this country by you Communist in 1918 caused the Great Depression. There was never a Great Depression in this country prior to the federal reserve, taxes & regulations.

The boom during WWII was much bigger than the expansions under Reagan and Kennedy.

In fact, the expansions under Reagan and Kennedy look like standard post-war expansions.

More important than the relative size of the boom is GDP data from the 40s. GDP doubled in 3 years (40-43) whereas historically real GDP doubles every 10 years (7 times in the last 70 years):

U.S. Department of Commerce. Bureau of Economic Analysis

 

[rdean]

The tax cuts were fantastic for growth - in China. All those companies moving to a country without reliable clean water or electricity? Where did the money come from to move all those companies there and build up all that infrastructure? From 2001 to 2008, more than 2.4 million. How many factories and companies employed 2.4 million? There's a few hundred where I work. How many where you work?

 

[onecut39]

Bullshit.

Remember your meme that WWII saved the US economy and not the new deal?

WWII did end the G Depression. Or rather the full employment of total war.

That was then, this is now. During WWII we became the industrial giant of the world and everything was "made in USA".

This held true through the Vietnam war. It is not the case today. Our manufacturing base is no longer sufficient to supply our ongoing wars. We gave it all top China and third world countries. Today war spending does not produce much employment...and less prosperity.

And oh yes, we emerged from WWII with a debt that exceeded our GNP.

 

[code1211]

The data does not lie. The tax cuts were a costly, shallowy thought-out solution for the economic problems that existed immediately following 9/11. I really wish people would stop being afraid of taxes. Revenue from taxes go to funding higher education, building roads and protecting our borders (amongst other benefits). Because of this extension, the average working taxpayer will get to keep a whopping $50 (rough estimate) in their paycheck. Is this really worth the price tag associated with this extension for the betterment of the health of our national economy?

The tax cuts were a Bush Administration goal. Before the 9/11 attacks, the need for the tax cuts was that we had enough tax revenues and we needed to give back to those who earned it.

After the attacks, we needed to stimulate the economy. Opposite goal with the same prescription. Interesting, no?

The conditions and the effects and the economic theory were all rubbish. W felt he could be re-elected if he cut taxes. He did. He was. Mission Accomplished.

41 promised to not increase taxes. He did. He wasn't. Lesson learned by the younger.