Is it time to repeal Bush's $1 trillion tax cut? »
Posted By Eagle_Eye 4 months, 3 weeks ago in Business & Finance
George Bush's 2001 tax cut was controversial almost from its inception. Many economists and analysts opposed the tax cut because they felt it wasn't necessary, given that the U.S. economy was already recovering from the 2001 recession. Now, with a record U.S. budget deficit and increased social services spending as a result of the recession, policy makers are wondering if the time has come to repeal the $1 trillion tax cut.
As many have noted, the tax cut was heavily tilted toward rich and upper-income citizens, who formed the basis of President Bush's political base. In addition to angering much of the country, this strategy guaranteed that, over time, middle-income and working families would not create as much broad-based demand as they would under a more balanced tax cut.
Furthermore, the Bush tax cut devastated the U.S.'s fiscal condition. It's hard to believe today, but the United States actually ran a $69 billion budget surplus in fiscal 1998, a $125 billion surplus in 1999, a $236 billion surplus in 2000, and a $128 billion surplus in 2001. These surpluses, the budgetary legacy of President Bill Clinton's administration, look odd in today's deficit-laden times.
The Bush tax cut ended that surplus era, driving the budget into a $157 billion deficit in fiscal year 2002. However, it should be noted that the 2001 recession also reduced federal revenue that year. Later, increased government spending for the Iraq/Afghanistan wars quickly sent the deficit spiraling to $250 billion in 2003 and to $412 billion in 2004. In fiscal year 2009, the bank bailout and financial crisis rocketing the deficit over the $1 trillion mark for the first time in the nation's history.
When President Barack Obama took office in January 2009, he received a chilling inauguration present: a $1 trillion (and counting) deficit. This year's fiscal stimulus package is expected to swell the deficit to an ugly $1.8 trillion.
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Eagle_Eye
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antibrainwasher4 months, 3 weeks ago
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Damned straight it is, trillions of dollars the richest 5% were paying since the last great depression they caused were cut, and spending on wars to profit the same arseholes were increased 100 fold.
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This depression we are in was caused by unregulated thievery and tax cuts to the rich, the insane trickle down BS theory they sell in think tanks to trailer trash.-
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vor4 months, 3 weeks ago
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It really goes back to Reagan and the Laffer Curve theory they tried to pull over. Reagan did this while running an arms race. Bush while going to war. This theory and trickle down were why Stockman called Reagan's economics "voodoo".
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Charlson4 months, 3 weeks ago
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rbiii4 months, 3 weeks ago
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theorangetrailblazerComment removed: Hard Banned
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4daysaleComment removed: Hard Banned
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beavith14 months, 3 weeks ago
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did you read the article?
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it does start off spouting your typical left nonsense, but comes to its senses by the end.
raise taxes at your peril. the recovery you snuff could be your own. (the banks are still busted. i don't see a recovery coming anyway) -
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Hyrul34 months, 3 weeks ago
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How long do we let the class division in America continue to grow until we take more Socialist approaches to the governments influence and control over the economy? Do we have to reach the extreme that Marx warns us of, will our stigmatic view of anything to do with communism/socialism ultimately keep us from achieving a society based more on solidarity and equality than competition?
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mesodude4 months, 3 weeks ago
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"How long do we let the class division in America continue to grow until we take more Socialist approaches to the governments influence and control over the economy?"
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--But I don't think cons had a problem with "socialism" when we were giving subsidies to oil execs earning record multi-billions. Nor were you interested in the CBO's opinions regarding Bush's trillions in tax cuts and deficit spending. You also didn't care about socialism when Bush gave jobs to those who lacked qualifications (except when you were terrified Harriet Miers would make it onto the Surpreme Court--so much for an up or down vote, huh?) and you were dead silent about no-bid defense and Katrina contracts. In sum, you're full of horseshit and no one gives a CRAP what you think qualifies as socialism. ;-P -
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Dionys4 months, 3 weeks ago
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Socialism and Marxism are as dead and useless as 'complete' models as Capitalism is. Somewhere along the middle path where profit is fine, but where we care for those who for whatever reason are left behind or left out, is the place to walk.
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Ratskii4 months, 3 weeks ago
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I'm surprised to see some conservative members dumping an article that supports their view. Confirms my impressions that they usually go by who is posting a story rather than what the story says.
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My opinion: It is somewhat dangerous to raise taxes during a recession. I wouldn't raise corporate taxes right now, nor would I raise taxes on people making less than one million a year. I think a case could be made for making a modest tax increase on people making over one million. I also think the loophole for corporations that set up shelters overseas (when they are doing most of their business in this country) should be closed. -
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calitennflo4 months, 3 weeks ago
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the tax cut was heavily tilted toward rich and upper-income citizens, who formed the basis of President Bush's political base.
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Well...isn't that what using a monetary system is all about? Dispargement?-a communication that belittles somebody or something
the act of speaking contemptuously of
wordnetweb.princeton.edu/perl/webwn -
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