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So How Did the Bush Tax Cuts Work Out for the Economy?
TAX.COM ^ | 09/24/2010 | David Cay Johnston

Posted on 09/25/2010 9:48:02 AM PDT by SeekAndFind

The 2008 income tax data are now in, so we can assess the fulfillment of the Republican promise that tax cuts would produce widespread prosperity by looking at all the years of the George W. Bush presidency.

Just as they did in 2000, the Republicans are running this year on an economic platform of tax cuts, especially making the tax cuts permanent for the richest among us. So how did the tax cuts work out? My analysis of the new data, with all figures in 2008 dollars:

Total income was $2.74 trillion less during the eight Bush years than if incomes had stayed at 2000 levels.

That much additional income would have more than made up for the lack of demand that keeps us mired in the Great Recession. That would mean no need for a stimulus, although it would not have affected the last administration's interfering with market capitalism by bailing out irresponsible Wall Streeters instead of letting the market determine their fortunes.

In only two years was total income up, but even when those years are combined they exceed the declines in only one of the other six years.

Even if we limit the analysis by starting in 2003, when the dividend and capital gains tax cuts began, through the peak year of 2007, the result is still less income than at the 2000 level. Total income was down $951 billion during those four years.

Average incomes fell. Average taxpayer income was down $3,512, or 5.7 percent, in 2008 compared with 2000, President Bush's own benchmark year for his promises of prosperity through tax cuts.

Had incomes stayed at 2000 levels, the average taxpayer would have earned almost $21,000 more over those eight years. That's almost $50 per week.

(Excerpt) Read more at tax.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: bushtaxcuts; economy; nimrod; rates; taxes

1 posted on 09/25/2010 9:48:03 AM PDT by SeekAndFind
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To: SeekAndFind

They would have worked a lot better coupled with massive spending cuts and regulation rollbacks.


2 posted on 09/25/2010 9:50:04 AM PDT by cripplecreek (Remember the River Raisin! (look it up))
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To: SeekAndFind

After-tax incomes, which is more important, were greater because of the tax cuts.


3 posted on 09/25/2010 9:51:45 AM PDT by Loyal Buckeye
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To: SeekAndFind
To be honest, I'm tired of the endless caculations to determine the maximum level we can be milked...err taxed.

Government has a very specific set of tasks that it's authorized to do. If the federal government wasn't so massively in violation of the constitution there wouldn't be a need to bleed every citizen of every last drop possible.

4 posted on 09/25/2010 9:53:28 AM PDT by highlander_UW (Education is too important to abdicate control of it to the government)
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To: SeekAndFind

This is a lacking and frankly bizarre analysis. Tax rates are but one of many factors that impact total income produced across the economy. Using one year 2000 as a base for evaluating the entire decade following is bizarre, especially considering that year saw the beginning of a down turn, dot com bubble layoffs. Looks to me like an author that worked hard to manipulate the facts to back a predetermined conclusion.


5 posted on 09/25/2010 9:55:09 AM PDT by ilgipper
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To: SeekAndFind

This is a false analysis. Our economy was entering a recession as the dot com bubble burst. We were also hit with the worst foreign attack on our soil ever. So the question is not what was the economy like, but what would it have been like WITHOUT the tax cuts.


6 posted on 09/25/2010 9:56:09 AM PDT by Jeff Chandler (Judas Iscariot - the first social justice advocate. John 12:3-6)
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To: SeekAndFind
4% unemployment, and this douchebag talks about tax cuts as if they had something to do with income levels.

They are unrelated.

7 posted on 09/25/2010 9:57:15 AM PDT by Rome2000 (OBAMA IS A COMMUNIST CRYPTO-MUSLIM)
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To: SeekAndFind

Given the NASDAQ meltdown and the resulting stock market performance, capital gains tax receipts were much lower during the decade. It has very little to do with the lowering of tax rates.
Clinton’s deficit into surplus had everything to do with the markets dot com blowoff, and very little to do with raising tax rates.


8 posted on 09/25/2010 9:57:36 AM PDT by GeorgeTex (Obama-Four M President (Mendacious Manchurian Muslim Marxist))
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To: SeekAndFind

Why does this guy ignore the effect of 9/11 and the 2 trillion dollar hit to the US economy?


9 posted on 09/25/2010 9:59:12 AM PDT by Crim (The Obama Doctrine : A doctrine based on complete ignorance,applied with extreme incompetence..)
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To: GeorgeTex

If I recall correctly, the dot-bomb cost the economy $5 trillion while 9/11 cost another $2 trillion. Hard to make up for those numbers.


10 posted on 09/25/2010 10:00:20 AM PDT by PhilosopherStone1000
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To: PhilosopherStone1000

Just looked...the author is a flaming libtard....that explains the massaging of reality...

There should have been a barf alert.


11 posted on 09/25/2010 10:04:03 AM PDT by Crim (The Obama Doctrine : A doctrine based on complete ignorance,applied with extreme incompetence..)
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To: SeekAndFind

There’s number-crunching and then there’s number-scrambling. This would seem to be the latter, even to an economic dunce such as I.


12 posted on 09/25/2010 10:06:27 AM PDT by skr (May God confound the enemy)
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To: SeekAndFind

...another distinguished graduate of The Paul Krugman Nobel Peace Prize School of Economics...


13 posted on 09/25/2010 10:07:10 AM PDT by JohnLongIsland (www.wilsonfornewyork.com)
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To: JohnLongIsland

David Cay Johnston is a former tax policy reporter for the New York Times.

Nuff said.


14 posted on 09/25/2010 10:09:07 AM PDT by Crim (The Obama Doctrine : A doctrine based on complete ignorance,applied with extreme incompetence..)
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To: SeekAndFind
So why are the dims talking about making any of the Bush tax cuts permanent?

Sack-o-crap analysis from sack-o-crap lefty...

15 posted on 09/25/2010 10:09:15 AM PDT by THX 1138 ("Harry, I have a gift.")
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To: highlander_UW
If you go strictly by the numbers you don't get the backround in play.
What was the effect of 9/11? No one mentions the destruction of 90,000 square miles by Hurricane Katrina.
16 posted on 09/25/2010 10:14:49 AM PDT by griswold3 ('Regulation and law without enforcement is no law at all)
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To: SeekAndFind
Total income was $2.74 trillion less during the eight Bush years than if incomes had stayed at 2000 levels.

It's ALWAYS the tax cuts and NEVER the outrageous and inefficient spending that's the problem. Always.

17 posted on 09/25/2010 10:16:53 AM PDT by EGPWS (Trust in God, question everyone else)
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To: SeekAndFind
Interesting article. Absolutley no information relating the tax cuts to the economy however. This guy is a long time muckraker, sometimes on the right side, sometimes not. Back in 2008 he shared my skepticism about the urgent need for unquestioning approval of the Bush bailouts, but at other times he's just a guy from Nation Magazine. I think this is one of those times.
18 posted on 09/25/2010 10:18:15 AM PDT by hinckley buzzard
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To: Jeff Chandler

Pets.com at 900. I rest my case.


19 posted on 09/25/2010 10:19:24 AM PDT by griswold3 ('Regulation and law without enforcement is no law at all)
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To: JohnLongIsland

Let’s face it...libtards can no more understand economics than a baboon can grasp quantum mechanics.


20 posted on 09/25/2010 10:19:33 AM PDT by Zman516 (muslims, marxists, communists ---> satan's useful idiot corps)
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To: SeekAndFind

From ‘05:

http://www.taxfoundation.org/blog/show/1296.html


21 posted on 09/25/2010 10:24:09 AM PDT by Bushbacker1 (I miss President Bush greatly! Palin in 2012! 2012 - The End Of An Error! (Oathkeeper))
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To: SeekAndFind
It's a good thing the person who wrote that article is an amateur. Otherwise, he or she would have been fired with such illogical and false information and analysis. There is so much wrong and incorrect in that article that it would take a very long rebuttal to point all of it out, which of course would be a waste of time since the person who wrote it is not really interested in truth or facts—just false liberal propaganda.
22 posted on 09/25/2010 10:51:11 AM PDT by HwyChile
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To: Zman516

Even so, if I had to choose, I’d put my money on the baboon.


23 posted on 09/25/2010 10:54:16 AM PDT by Mygirlsmom (There is no more Recession! It is now to be called "Economic Climate Destruction")
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To: SeekAndFind

SO let me guess, Mr. Johnson here is suggesting that the Bush tax cuts not be extended and that America undergo the largest tax increase in US history? Couple that with the un-announced tax increases, such as VAT tax, etc., that these type idiots will slam us with......wonderful you live in Mr. Johnson, huh? =.=


24 posted on 09/25/2010 10:54:32 AM PDT by cranked
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To: SeekAndFind
Nice statistical shell game or lying by omission. Did not control for the impact of the 09-11 attacks on the US Economy.

So this “analysis” is total garbage where by a pre determined outcome was given a gloss of intellectual creditably by selectively manipulating the data.

Or, in other garbage in garbage out

25 posted on 09/25/2010 10:56:05 AM PDT by MNJohnnie (The problem with Socialism is eventually you run out of other people's money. Lady Thatcher)
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To: SeekAndFind

The first 18 months of the 2003 Bush tax cuts yielded 300,000 jobs created, the next 20 months 5 million jobs created according to the heritage foundation analysis. The govt should live on less and the tax payers live on more!


26 posted on 09/25/2010 11:05:31 AM PDT by inkdude
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To: SeekAndFind

Looks like this moron is auditioning for an 0bama economic position. So it follow that by this logic, we can expect proportionately more tax revenues at 70, 80 or 90 percent marginal rates. We also can expect more income and GDP with higher taxes? Marxist economists will never answer the question at which rate will revenue go down. Also, what good does it do to boast about a higher income if most of it goes for taxes, it’s only after tax income that matters to the individual.
This moron thinks that his data (which I believe will be shown to be manipulated because it is natural for a Marxist to deceive) is obviously sufficient to prove his insane thesis that higher income taxes actually increase individual income. There are other factors to be considered such as breakthrough economic innovation (internet, computers), wars (9/11), economic cycles (government sponsored housing bubble) occurring during a time period studied that have profound influences on individual incomes.
In order to prove this proposition, one needs not only raw economic empiric data (which can be manipulated by varying the starting points) but an account of outsides variables that affect the economy. Then, the proposition must also be subject to the fundamental logic that people act in their self interest in nearly all cases. Even Leftists do all they can to avoid paying taxes. At a certain point, a rational person will stop working when he cannot keep his money. This is as basic as the Pavlov dog experiments when behavior is extinguished after a reward is no longer given after the performance of a desired activity.
Even a dog knows more about economics than this Marxist. Perhaps zero can hire his dog Bo as and economic advisor. At least he would be more qualified.


27 posted on 09/25/2010 11:29:48 AM PDT by grumpygresh (Democrats delenda est)
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To: Zman516
Let’s face it...libtards can no more understand economics than a baboon can grasp quantum mechanics.

Excuuuuuuse me! I have been having great success teaching baboons everything I know about quantum mechanics!

28 posted on 09/25/2010 11:46:32 AM PDT by exDemMom (Now that I've finally accepted that I'm living a bad hair life, I'm more at peace with the world.)
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To: SeekAndFind
“Total income was $2.74 trillion less during the eight Bush years than if incomes had stayed at 2000 levels.”

The dumbass that wrote that has no idea what the economy would be without the tax cuts! That is like the lying Marxist saying ‘jobs saved or created’.

29 posted on 09/25/2010 12:35:28 PM PDT by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: highlander_UW

It’s funny how people are always whining about lack of funding for things, yet the idea that perhaps if government wasn’t blowing money on things that aren’t its business, maybe it would have money to put towards things that are never occured to them.


30 posted on 09/25/2010 12:58:21 PM PDT by RWB Patriot ("My ability is a value that must be purchased and I don't recognize anyone's need as a claim on me.")
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To: RWB Patriot
It’s funny how people are always whining about lack of funding for things, yet the idea that perhaps if government wasn’t blowing money on things that aren’t its business, maybe it would have money to put towards things that are never occured to them.

Exactly what I was trying to convey. On other websites I had liberals challenge me as to what I'd cut and they were shocked into near silence when I gave them an extensive list of cuts and revision, why I'd make those changes and the likely effect. But at the core is bring the federal government into line with the constitution and they wouldn't be in such a situation that they need to confiscate ever larger sums of money. Of course that means that politicians would lose influence and power...and there is the rub.

31 posted on 09/25/2010 1:10:22 PM PDT by highlander_UW (Education is too important to abdicate control of it to the government)
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To: SeekAndFind

Interesting that this writer only focuses on the tax income information, without giving any information about how much Congress SPENT. If spending hadn’t ballooned, the tax income would have been more than sufficient.


32 posted on 09/26/2010 8:11:52 PM PDT by SuziQ
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