When Republicans propose across the board income tax cuts, the Democrats always holler, “tax cuts for the rich, tax cuts for the rich.” Sounds a little like “citizen’s arrest, citizen’s arrest,” doesn’t it?
Stephen Moore, of the Wall Street Journal, in his 2008 book, “The End of Prosperity,” indicated that President Bush’s 2001 tax cuts failed to revive an economy still staggering from the bursting of the dot-com bubble. The president’s strategy had been to adopt a demand-side Keynesian stimulus, hoping that putting a few extra dollars in American’s pockets would jump start the economy through increased consumption. This approach faltered, not just because Americans opted to save their rebates, but because it neglected the importance of business investment to overall growth. The economy lagged and revenues stagnated. What the United States needed then (and now) was to stimulate investment, not consumption.
In 2003, President Bush cut the dividend and capital gains rates to 15 percent each, and the economy responded. In two years, stocks rose 20%. In three years, $15 million of new wealth was created. The U.S. economy added 8 million new jobs from mid-2003 to early 2007, and the median household increased its wealth by $20,000 in real terms.
But the real jolt for tax-cutting opponents was that the 03 tax cuts also generated a massive increase in federal tax receipts. From 2004 to 2007, the federal tax revenues increased by $785 billion, the largest four-year increase in American history. According to the Treasury Department, individual and corporate income tax receipts were up 40 percent in the three years following the Bush tax cuts. And the rich paid an even higher percentage of the tax burden than they had at any time in at least the previous 40 years. This was news to the New York Times, whose astonished editorial board could only describe the gains as a “surprise windfall.”
Unfortunately, President Bush allowed Congress to spend away those additional tax revenues when those tax revenues that flowed from the 03 tax cuts could have paid for both the Afghanistan and Iraq wars.
When President George W. Bush was elected, we were in a recession caused by the dot-com bust of the late nineties. The economic prosperity of the nineties, the Bill Clinton presidency years, were fueled by a Republican Congress’s balancing of the budget and the private sector technological revolution which changed forever the way we live our day to day lives.
During the weeks between the determination that Bush had been elected and the inauguration, the main stream media suggested that the word, “recession” not be used to describe our current economic status. It was the opinion of the MSM that the American people were depressed enough as it was and didn’t need to hear the term “recession.”
However, after the crash of 2008 and the election of Barak Obama to the presidency, the MSM couldn’t use the word, “recession,” enough. In fact they were calling it the “great recession,” and seemed tempted to call it a depression.
The current president, the MSM, and the rest of the Democrats, would have you think that the Bush presidency was one of economic purgatory. Not so. When Mr. Bush first took office, he had the nineties recession or maybe you might call it the “Clinton recession” to combat. Then, there was 9/11 and if you don’t think the first major foreign attack on American soil would not “shake things up,” I have a bridge you might be interested in purchasing. The economy did pick up in late 2003 and 2004 and prosperity reigned until the price of gas began increasing in 2008. And we all know when the price of gas increases when a Republican has the presidency, it is the Republican president’s fault. On the other hand, when a Democrat is in office and the price of gas increases, the president actually has nothing to do with the price of gas. Also, the inverse it true.
Then came the crash of 2008 in the fall of 2008, just before the presidential election. Democrats would have you believe that it was all George Bush’s fault when in fact, the problems began during the Jimmy Carter administration, continued with the Clinton administration’s social engineering in order that all Americans could purchase homes, whether they could afford them or not.
I’ve never seen so much hatred directed toward a president as the left has directed toward George W. Bush.
But that’s okay, they’re Democrats, darlings of the media. It’s okay for them to lie, cheat, steal, and kill because they’re Democrats. Sometime I wonder what it would be like to be a Democrat. I wouldn’t get called the names I do now. I wouldn’t get the threats that I do now. I wouldn’t have lies told about me like I do now. Do I want to become a Democrat? NO…NO…NO!
Note: Thanks goes to the Washington Times and opinion/analyst Ryan Dwyer for his February 2010 article in supplying the above information.