Saturday, September 25, 2010

All That Prosperity Promised? The Failure Of The Bush Tax Cuts

<p>Read this article on how Bush tax cuts reduced Americans $2.7 trillion in income.<br>  “Average incomes fell. Average taxpayer income was down $3,512,  or 5.7 percent, in 2008 compared with 2000, President Bush’s own  benchmark year for his promises of prosperity through tax cuts.  Had incomes stayed at 2000 levels, the average taxpayer  would have earned almost $21,000 more over those eight years. That’s  almost $50 per week.”
Read this article on how Bush tax cuts reduced Americans $2.7 trillion in income.
Average incomes fell. Average taxpayer income was down $3,512, or 5.7 percent, in 2008 compared with 2000, President Bush’s own benchmark year for his promises of prosperity through tax cuts.
Had incomes stayed at 2000 levels, the average taxpayer would have earned almost $21,000 more over those eight years. That’s almost $50 per week.”

1 comment:

Anonymous said...

This makes so much sense, because everyone know back when there was no income tax (which was the ultimate tax cut Bush only dreamed about because it was like cutting taxes to 0%!) there was no income.

Of course, every economist knows that the surest way to reduce income is to reduce income tax rates. It also is common sense. When people pay less in taxes, they are encouraged to earn less income (who wants to earn more if they get to keep more of what they earn?). It's like the old saying: "If you want more of something, tax it." This theory also explains how sales of yachts and other luxury items skyrocketed when Congress instituted a luxury tax in 1990.

And if Bush didn't cut taxes, income would have stayed at 2000 levels because the tech bubble that occurred under Bill Clinton's presidency never would have happened.

Thanks a lot Bush. And thank you Tax.com for this brilliant intuitive analysis.