Bush misleads again on federal revenues

In a Wall Street Journal op-ed today, President Bush falsely suggests that his tax cuts have increased federal revenue yet again:

It is also a fact that our tax cuts have fueled robust economic growth and record revenues. Because revenues have grown and we've done a better job of holding the line on domestic spending, we met our goal of cutting the deficit in half three years ahead of schedule. By continuing these policies, we can balance the federal budget by 2012 while funding our priorities and making the tax cuts permanent. In early February, I will submit a budget that does exactly that. The bottom line is tax relief and spending restraint are good for the American worker, good for the American taxpayer, and good for the federal budget. Now is not the time to raise taxes on the American people.

By balancing the budget through pro-growth economic policies and spending restraint, we are better positioned to tackle the longer term fiscal challenge facing our country: reforming entitlements--Social Security, Medicare and Medicaid--so future generations can benefit from these vital programs without bankrupting our country.

But as I've pointed out over and over since 2001, Bush's suggestion is false. Indeed, his own economists have repeatedly admitted that tax cuts do not increase revenue. It's a sad commentary on the nation's press corps that this falsehood so often goes unchallenged.

Comments

[MinorRipper]

If Bush wrote this himself, then I'm a monkey's uncle...way too many big words. Anyway, please see why Al Gore will vanquish Hillary in 2008 @ www.minor-ripper.blogspot.com

[mishu]

his own economists have repeatedly admitted that tax cuts do not increase revenue.

Nice spin Mr. Sanity. What his own economists say is that the tax cuts won't necessarily pay for themselves. What you tax fetishists forget to point out is Clinton's revenue increases were due to demographics and the internet. Baby boomers were into their peak earnings age bracket coupled with Tulip mania on Wall St. for Pets.com and the like. You've also had extremely low oil prices at that time. It's only a matter of time that these phenonema will correct themselves.

Bush had to cut taxes to stimulate investment after the bubble burst. You don't take away capital from people with the best ability to raise it. Tax cuts did lay the ground work for significant growth. The reason why growth will shrink now is a shrinkage in the labor pool due to demographics. Baby boomers are starting to retire now. They can because of nice returns on their market investments.

To keep growth going to increase the labor pool. Now, you could do that buy taxes people out of their retirement plans or you could increase immigration. Which would you think is more humane?