The 2001 Bush Income Tax Cut: A Major Policy Mistake

Filed under: Politics

The 2001 Bush income tax cut is one of those issues whose fate has been sealed by objective economic conditions.



Simply, if the U.S. economy had registered robust growth during the final two years of the Bush administration, and no other negative economic events occurred, the tax cut, which will increase the deficit by $336 billion this fiscal year, $295 billion in fiscal 2011, and by more than $320 billion per year through fiscal 2019, perhaps would have had a chance of being extended.



But that robust GDP growth did not occur. Neither did robust job growth. The tax cut did, however, instantaneously turn a federal budget surplus into a budget deficit. Further, failing to phase-out the tax cut would seriously impair the nation's ability to balance the federal budget.

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The 2001 Bush Income Tax Cut: A Major Policy Mistake originally appeared on BloggingStocks on Thu, 09 Sep 2010 18:00:00 EST. Please see our terms for use of feeds.

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United States - Politics - Income tax - Gross domestic product - Deficit

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