The Bush Tax Cuts Did Not Bankrupt The Country
President Obama, the Democrat party, and the Progressive Left are quick to blame the nation’s economic problems on the “Bush tax cuts for the wealthy”. President Obama continues to claim that after 3 years in office, the economic failures of the Obama administration are due to the situation he inherited from President Bush. However, the facts do not support President Obama’s claims.
Blaming the country’s economic woes on the Bush tax cuts ignores the facts.
The argument against the Bush tax cuts attempts to imply that the government “spent” money that it did not have only to benefit a few wealthy people and cost the government revenue that it could have used for other purposes. However, the facts do not support this argument.
Federal revenues did indeed shrink in the first two years following the Bush tax cuts, but the cause of the decline in revenue can not be based entirely on the Bush tax cuts. That year revenues also fell due to the burst of the tech bubble. After the first two years of the tax cuts, federal revenues increased. Federal revenues for the years following the Bush tax cuts and tech bubble are as follows (in trillions):
- 2003 – $1.782
- 2004 – $1.88
- 2005 – $2.153
- 2006 – $2.406
- 2007 – $2.567
The fact is that the Bush tax cuts helped lead to a 44% increase in Federal revenue between 2003 and 2007.
President Obama, who has delivered the largest yearly deficits in the history of the country, also likes to point to the deficits caused by the Bush tax cuts. However, the deficits under the Bush administration and a Republican controlled congress fell from $413 billion in 2004 to $161 billion in 2007. None of the yearly deficits topped a trillion under Bush.
The President isn’t interested in raising additional revenues, but rather seeks to satisfy his burning desire to try to take wealthy tax payers down a peg or two out of his desire to bring about “economic justice”. Years of failed progressive policies have failed to raise the poor and middle class up, so the President seeks to take away from the wealthy based on a warped sense of fairness that President Obama shares with his fellow Marxists, Socialists, and Progressives.
If the President really wanted to help the poor and middle classes, he would seek solutions that increase individual liberty and prosperity by shrinking the bloated out of control Federal government and reducing the burden on the country of supporting the Federal bureaucracy.