At the end of the year, the Bush tax cuts will expire. Republicans want to extend those cuts across the board. Democrats want to extend the cuts only for the first $250,000, allowing the cuts to expire on income above that.
The reason these tax cuts are expiring is because when enacted the Republicans were unable to garner enough votes to make them permanent. So we have had this “trial period” for the cuts to see if we like them.
So let’s look at how these cuts have done.
The No. 1 reason for these tax cuts was to “grow the economy and reduce unemployment.” These things can be measured, so let’s look at them.
According to Wikipedia, under the article on “The Economy of the United States”: “The U.S. share of world GDP peaked in 1999. The share has been declining each year since.”
According to the Bureau of Labor Statistics, unemployment in 2000 was 4 percent. Today it is more than 9 percent.
In addition, since these cuts were enacted, our national debt has ballooned. The figure I’ve heard is $4 trillion. Interestingly, the amount of national income that this tax cut has cost us is also around $4 trillion.
To summarize: Since we started test driving these tax cuts, our GED is shrinking, our unemployment has skyrocketed and our national debt has exploded.
I think it’s time to give this lemon back to the dealer.