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View Full Version : Bush's Tax Cuts and the Deficit




Sayhey
Jan 27, 2004, 09:49 AM
In Krugman's latest (http://www.nytimes.com/2004/01/27/opinion/27KRUG.html) he takes on the myth of Bush's deficit not coming from his enormous tax cuts to the wealthy.

Even conservatives are starting to admit that George Bush isn't serious when he claims to be doing something about the exploding budget deficit. At best — to borrow the already classic language of the State of the Union address — his administration is engaged in deficit reduction-related program activities.

But these admissions have been accompanied by an urban legend about what went wrong. According to cleverly misleading reports from the Heritage Foundation and other like-minded sources, the deficit is growing because Mr. Bush isn't sufficiently conservative: he's allowing runaway growth in domestic spending. This myth is intended to divert attention from the real culprit: sharply reduced tax collections, mainly from corporations and the wealthy.



Desertrat
Jan 27, 2004, 09:59 AM
I'd like to see some data.

SFAIK, the dollars per year foregone due to the tax cuts seem rather small in comparison to the dollars per year of the deficits.

I vaguely recollect that the cuts amount to some $100 billion per year; the deficits are around $500 billion. $400 billion doesn't strike me as chump change.

'Rat

Sayhey
Jan 27, 2004, 10:16 AM
Originally posted by Desertrat
I'd like to see some data.

SFAIK, the dollars per year foregone due to the tax cuts seem rather small in comparison to the dollars per year of the deficits.

I vaguely recollect that the cuts amount to some $100 billion per year; the deficits are around $500 billion. $400 billion doesn't strike me as chump change.

'Rat

Here's the study that Krugman cites.

http://www.cbpp.org/1-26-04bud.htm

wwworry
Jan 27, 2004, 10:30 AM
This has fiscal mismanagement written all over it. 'Rat you have to admit Bush is not doing a good job on this. Spending is up. Revenues are down. And the people getting all the breaks are at the very top. Why are we going into huge debt to pay for tax cuts for the few?

Really, why?