On 1 January 2011, the Bush Tax Cuts are set to expire and there is fierce debate whether or not to extend them. These tax cuts, despite what the liberals say, are not solely focused on “the rich”. The reduction in tax rates brought us out of the 2001 recession and contributed to the economic growth, starting in 2003. However, due to the media’s amazing work (sarcasm), people really don’t know what the 2001 and 2003 tax cuts actually did. But, that’s why I’m here.
Many people on the Left wrongly blame the current recession on the Bush Tax Cuts. They say our budget problem came from these tax cuts “for the rich”. However, as seen in this chart , the immense deficits we are facing come from excessive amounts of government spending, mainly in entitlement programs like Social Security, Medicare, and Medicaid. Meanwhile, instead of reeling in this out of control spending, in the past year, our federal government has increased the budget deficit four times the amount it was in the last fiscal year. Continue reading “Extend the Bush Tax Cuts”