Tax Cuts Do Not Pay For Themselves
Wednesday July 12, 2006
Contrary to President Bush's continued assertion that his tax cuts pay for themselves, a Department of Treasury analysis contradicts him: "tax cuts do not come remotely close to paying for themselves," according to the Center for Budget and Policy Priorities and the Wall Street Journal. (tip1, tip2).
Supply side economics was debunked ages ago, when Reagan touted it. So why do mainstream newspapers continue to quote the President on this without pointing out that he's talking through his hat? Especially when tax cuts seem to be the primary focus of Congressional action this year.
Just look at the gross US debt as a percent of GDP. When does it rise and when does it fall? Hint: it's counterintuitive.