The so-called Bush tax cuts, which were almost passed in the last century, are being vilified by the Obama administration as having busted the government budget and led to unsustainable deficits. The president might want to consult his own economic advisers, whose data suggest otherwise.
Investor’s Business Daily ran an editorial:
While President Obama insists the Bush tax cuts caused the recession and record deficits, his own economists say otherwise. He might want to consult their data for the truth.
During the White House press conference, he added, “If we’re going to be serious about deficit reduction, we’ve got to do it in a balanced way.”
Obama argued voters made it clear in the election that they don’t want to go back to Republican policies that “cost” the Treasury revenues and “blew up the deficit,” as he told them repeatedly during the campaign.
As the IBD editorial clearly points out, budget deficits shrunk dramatically after the Bush tax cuts. This was not a fluke. By promoting economic growth in the private sector, which did happen after the Bush tax cuts, the tax revenue tended to go up: from $1.853 billion in 2002 to $2.524 billion in 2008 — just before the housing market bubble burst.
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