Posted on 07/27/2006 2:44:42 PM PDT by ChessExpert
... CBO informed lawmakers in May 2003 that the tax cuts would cost the treasury $94 billion in 2006. But it now appears that the cuts generated so much “unexpected” economic activity that the original CBO projection for 2006 was off by an astounding $124 billion! Add in last year’s underestimation of $89 billion, and the $25 billion oversight in 2004, and you have a cumulative CBO mistake that now totals $238 billion.
(Excerpt) Read more at humanevents.com ...
Unexpected my butt. Will these guys EVER get it?
The CBO needs to be forced to use dynamic scoring.
Don't look for CBS to cover this.
Bump!
I am not kidding.
While I and many others predicted these tax cuts would generate economic activity and thus tax revenues, it would be nice if the president and congress hadn't added fuel to the Democrats' fire of lies that the tax cuts have created current deficits by instead cutting taxes AND spending. Americans just aren't aware that tax cuts created 15% revenue growth, and that deficits are due to 18% spending growth during the same period. If Bush and the GOP had cut spending and deficits became surpluses, we'd forever have put to rest the lie that tax cuts create deficits, and Americans would be demanding further tax cutting and extensions of current cuts. Bush and the GOP really stepped in it on this one by allowing the Democrats to keep one of their best weapons in their arsenal against tax cuts.
It's too bad the extra revenue is coming from higher energy prices and other nonproductive sources.
If tax cuts are a boost...imagine what abolishing the IRS would do to the economy (taxation, however it is accomplished, needs to be non-invasive procedure).
Unexpected my butt. Will these guys EVER get it?
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They don't want to get it. They closed their eyes and ears during Reagan too.
"Back in 2003, Senate moderates such as Olympia Snowe (R-Maine) and George Voinovich (R-Ohio) pressured Bush to limit the overall “cost” of the tax package to $350 billion over 10 years."
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Since when are these two anything but LIBERALS?? I just love socialists/Marxists as they view all money as property of the state. Therefore, letting the producers of that money keep THEIR OWN MONEY is a COST TO THE STATE.
Freakin' communists.
IBF..
it only works every time it's tried.
"Treasury finally states the obvious on taxes
Published on: 07/27/06
Even when the Bush administration tries to put the most favorable spin on its massive tax cuts, an inconvenient truth is spit out: Tax cuts don't automatically pay for themselves.
The Treasury Department acknowledges as much in a new report that touts the economic benefits of making the Bush tax cuts of 2001 and 2003 permanent. In order to keep federal debt from growing faster than the economy, "tax relief must be financed by an offsetting change in government revenues or spending," the agency states.
Neither option is painless. Tax cuts scheduled to expire at the end of 2010 have cost the federal treasury almost $1.1 trillion so far. That's equivalent to about 40 percent of all the money the federal government expects to spend this fiscal year, and twice the current annual defense budget.
Clearly, the spending reductions necessary to offset the tax cuts would be substantial. However, the Treasury Department argues that reducing federal spending would be better for the economy than increasing taxes. National income would increase about 0.7 percent a year by making the tax cuts permanent and offsetting them with spending cuts, according to the agency's analysis. Raising taxes "may result in lower " economic output, according to the Treasury Department.
The president insists that tax cuts motivate individuals to invest more and save more. His theory is that cuts make the economy grow faster than it otherwise would, and therefore tax revenues grow faster than might be expected. Another inconvenient truth is that his theory isn't working.
Five years after the first Bush tax cuts were enacted, the national savings rate is less than zero: individuals spend more than they earn. And despite the news that federal tax revenue is growing faster than the White House expected, the numbers are misleading. Adjusted for inflation, per-capita tax revenue is virtually unchanged since 2001, according to the Center on Budget and Policy Priorities, a Washington think tank.
Those aren't theories; they're facts.
— David McNaughton, for the editorial board"
As incredible as it seems there are liberals who will twist the tax cut lie even after the information is out there for all to see.
Non Productive?
Do you have any idea of the amount of investment that is occurring today in the oil and gas industry as a direct result of this influx of dollars into the industry?
I work in a related industry and have for 35 years. In all that time I have never seen the level of investment that I am today.
Oooh I like that article. Good enough to print and give to some naysayers I know.
That's good to hear. That extra supply should eventually bring down prices. From what I've read inventory levels are high and I've noticed that stock prices for small oil companies have come down quite a bit.
But up to this point what I've said is accurate. Economic growth up to this point has come from higher energy costs, higher commodity costs, higher housing costs, and unchecked federal government growth -- all nonproductive sources. A lot of that has come from GWB's demand side economic policies, the War on Terror, and natural disasters. Now the Federal Reserve is set on causing a recession so the supply side can catch up. Had GWB gone with supply side policies in the first place we would be a lot better off today and economic growth would be coming from more productive sources.
You should run for Democrat office with that line.
You would probably win.
Let's hope so as it will show what a monster of a benefit the FairTax will be to this country and its taxpayers.
It's time for the FairTax!!!
Well said ...!!!
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