Tuesday, January 27, 2009

Tax Cuts: Been There, Tried That

The tax cut approach as stimulus has already been tried and failed as economic stimulus. The Bush administration often claimed as they tried to sell the Bush tax cuts of 2003, that they would generate 1.4 million jobs on top of the 4.1 million jobs that were expected to be generated over the eighteen months following June 2003. This did not happen. Not only did the promised 1.4 million additional jobs not appear, but the 4.1 million jobs expected with no action also failed to materialize. In all, only 2.4 million jobs were created—1.7 million short of the administration’s projection without their new policy.

You can check http://www.jobwatch.org/ to see what I am saying.

The Bush Administration called the tax cut package, its "Jobs and Growth Plan," and by it's own metrics the tax cut program fell short by a total of 3.1 million jobs. That would be called failure.

Republicans have but one answer to every problem, TAX CUTS.

This is wrong http://economistsview.typepad.com/economistsview/2009/01/the-2003-jobs-and-growth-plan-tax-cuts-didnt-work.html

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