TAX CUTS = DEFICITS NOT STIMULUS and GROWTH

FD:
The Average person in USa has not benefited from the Bush Tax Cuts.
And there was no REAL growth in Gross Domestic Production for the last 8 years.
And the budget deficit SWELLED to over $10 Trillion in DEBT.
Tax Cuts did not work and will not work against this business cycle.

http://www.cbpp.org/9-27-06tax.htm

All morning long, I have listened to Red State Governors argue that TAX CUTS are some sort of tried and proven method for stimulus during recessions... Kennedy, Reagan, Bush are always the examples.

Using the discussion on the website above, let's review the reality of these tax cuts.

Since 2001, the Administration and Congress have enacted a wide array of tax cuts, including reductions in individual income tax rates, repeal of the estate tax, and reductions in capital gains and dividend taxes. Nearly all of these tax cuts are scheduled to expire by the end of 2010.

Making them permanent would cost about $4.4 trillion over the next decade (when the cost of additional interest on the federal debt is included). (http://www.cbpp.org/1-31-07tax.htm)

Because important decisions about these tax policies must be made in the next few years, it is essential to understand their effects on deficits, the economy, and the distribution of income.

Supporters of the tax cuts have sometimes sought to bolster their case by understating the tax cuts’ costs, overstating their economic effects, or minimizing their regressivity.

Here, we address some of the myths heard most frequently in recent tax-cut debates.

(For a discussion of myths specific to the estate tax debate, see http://www.cbpp.org/pubs/estatetax.htm.

For a discussion of issues surrounding the Alternative Minimum Tax, see http://www.cbpp.org/2-14-07tax.htm.)

Myth #1 Tax Cuts are not related to the budget Deficits

Congressional Budget Office data show that the tax cuts have been the single largest contributor to the reemergence of substantial budget deficits in recent years. Legislation enacted since 2001 added about $3.0 trillion to deficits between 2001 and 2007, with nearly half of this deterioration in the budget due to the tax cuts (about a third was due to increases in security spending, and about a sixth to increases in domestic spending). Yet the President and some Congressional leaders decline to acknowledge the tax cuts’ role in the nation’s budget problems, falling back instead on the discredited nostrum that tax cuts “pay for themselves.”