Hard Numbers: Taxes & the U.S. Economy
Over at Tax.com, economist David Cay Johnston lays out a detailed, by-the-numbers case for just what a disaster the Bush tax cuts have been for our country, and why they need to expire.
The bottom line? By even the most forgiving metrics, the Bush-era tax cuts cost the United States $1.8 trillion and completely failed to produce any of the benefits that the GOP promised they would yield. (A more thorough accounting suggests the true cost is closer to $2.7 trillion.)
I found myself nodding in agreement as I read Johnston’s post-evidentiary summary (emphasis mine):
The hard, empirical facts:
The tax cuts did not spur investment. Job growth in the George W. Bush years was one-seventh that of the Clinton years. Nixon and Ford did better than Bush on jobs. Wages fell during the last administration. Average incomes fell. The number of Americans in poverty, as officially measured, hit a 16-year high last year of 43.6 million, though a National Academy of Sciences study says that the real poverty figure is closer to 51 million. Food banks are swamped. Foreclosure signs are everywhere. Americans and their governments are drowning in debt. And at the nexus of tax and healthcare, Republican ideas perpetuate a cruel and immoral system that rations healthcare — while consuming every sixth dollar in the economy and making businesses, especially small businesses, less efficient and less profitable.
This is economic madness. It is policy divorced from empirical evidence. It is insanity because the policies are illusory and delusional. The evidence is in, and it shows beyond a shadow of a reasonable doubt that the 2001 and 2003 tax cuts failed to achieve the promised goals.
So why in the world is anyone giving any credence to the insistence by Republican leaders that tax cuts, more tax cuts, and deeper tax cuts are the remedy to our economic woes? Why are they not laughingstocks? It is one thing for Fox News to treat these policies as successful, but what of the rest of what Sarah Palin calls with some justification the “lamestream media,” who treat these policies as worthy ideas?
The Republican leadership is like the doctors who believed bleeding cured the sick. When physicians bled George Washington, he got worse, so they increased the treatment until they bled him to death. Our government, the basis of our freedoms, is spewing red ink, and the Republican solution is to spill ever more.
Those who ignore evidence and pledge blind faith in policy based on ideological fantasy are little different from the clerics who made Galileo Galilei confess that the sun revolves around the earth. The Capitol Hill and media Republicans differ only in not threatening death to those who deny their dogma.
How much more evidence do we need that we made terrible and costly mistakes in 2001 and 2003?
Go check it out.