Tuesday, August 16, 2011

Are Bush Tax Cuts Worth Keeping? continued

The previous post on this topic generated swift replies. I am not an economist. So I will let Bruce Bartlett - a domestic policy adviser to President Reagan - address the effectiveness of the Bush Tax cuts:

"The truth is that there is virtually no evidence in support of the Bush tax cuts as an economic elixir. To the extent that they had any positive effect on growth, it was very, very modest. Their main effect was simply to reduce the government’s revenue, thereby increasing the budget deficit, which all Republicans claim to abhor.


It’s worth remembering where the Bush tax cuts came from in the first place. In 1999, in the midst of one of the biggest economic booms in American history, then Texas Gov. Bush convened a group of Republican economists to draft a tax plan for him. Contrary to Ronald Reagan’s 1981 tax cut, which was a simple across-the-board marginal tax rate reduction, the Bush plan was a hodge-podge of tax gimmicks designed more to win the support of various voting blocs than stimulate growth."

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CC