In Defense Of Bush’s Tax Cuts

People often say that the blogosphere is “self-correcting” and that’s true — for the right side. On the other hand, the left side of the blogosphere is a fountain of misinformation. The left gets it wrong over and over and over again, day in and day out, and as long as the story reflects badly on Republicans, it’s “too good to check.”

For example, take this snippet from a post at The Talking Dog about the extension of Bush’s tax cuts:

“The GOP official statement is that it is believed that these regressive, non-stimulative asinine tax cuts will “stimulate the economy” which, of course, they haven’t done yet… more likely, they will do little or nothing– perhaps a few jobs may be credited against ballooning the already gigantic federal deficit to create them.”

This conforms quite well with the many incorrect preconceptions that Democrats have about tax cuts, but it’s completely unrelated to what has actually transpired.

For example, consider the claim that the tax cuts haven’t stimulated the economy. The tax cuts were approved in 2003 and the economy has been thriving ever since.

In mid-2003, the jobless rate was 6.4% But, today? The jobless rate is at 4.7% and still dropping.

Thank you, Bush tax cuts!

Take a look at GDP as well. Since the tax cuts have gone into effect, the GDP has grown at a significantly higher rate than the average for the 80s or 90s.

In the 80s, the average growth was +2.9%. In the 90s, average growth was +3.1%. In 2004, it was 4.2%. In 2005, it was 3.5%. Know what the GDP growth was last quarter? +4.8%.

Thank you, Bush tax cuts!

Then, the Talking Dog goes on to blame the tax cuts for increasing the deficit. Sorry, buddy, but once again you’re absolutely wrong. The deficits have been caused by spending increases, not tax cuts. As a matter of fact, the tax cuts have actually INCREASED the amount of revenue flowing into the treasury, as Bill Frist so ably pointed out.

“Many people in Washington have long known a dirty little secret about tax-cut measures: When done right, they actually result in more money for the government.

Ever since the Senate approved the last major tax relief bill, in 2003, revenues have increased every year. In 2004, they went up 5.5%. Last year, they rose 14.5%, the largest increase in nearly 25 years.

Total government collections, in fact, increased more after President Bush’s 2003 tax cuts than they did after President Clinton’s 1994 tax hikes.”

So, the tax cuts stimulated economic growth and produced more tax revenue for the government?

Thank you, Bush tax cuts!

Let’s hope that one day, the left is honest enough to give Bush the credit he deserves for his magnificently timed and extremely effective tax cuts.

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