The massive Bush tax cuts mark their 10th birthday this week. Sadly, despite my best efforts to find something redeeming about them—honest!—there is little to celebrate. By nearly all of the metrics set out by President Bush himself, the cuts were a colossal failure.
In 2001, the Bush administration inherited a few years' worth of budget surpluses, so it decided to cut income tax rates, double the child-care credit, and sharply reduce the levies on investment income. The economy then slowed, even entering a brief recession. As a form of stimulus, the administration doubled down, expanding and hastening the 2001 changes. Bush promised that the tax cuts would do a whole lot more than put money in people's pockets—which, in fact, they did. He said they would 'starve the beast,' forcing Congress to reduce the size and scope of government. He promised they would increase the prosperity of all Americans. He also vowed: 'Tax relief will create new jobs. Tax relief will generate new wealth. And tax relief will open new opportunities.' …
[Besides that,] the benefits mostly accrued to the rich, according to the nonpartisan Tax Policy Center. The think tank reports that between 2001 and 2008, the bottom 80 percent of filers received about 35 percent of the cuts. The top 20 percent received about 65 percent—and the top 1 percent alone claimed 38 percent.
Thursday, June 09, 2011
Bush tax cuts 10th anniversary: They've been a failure in every conceivable way
By Annie Lowrey in Slate Magazine