October 08, 2004
Supply Side Economics Still Dead
Let's just say Bush's experiment hasn't added any data in support of the idea that slashing taxes on the wealthy will lead to additional revenue:
Even after a year of solid economic growth and booming corporate profits, federal income tax revenues were lower in the fiscal year that just ended than in the year before President Bush took office, according to estimates by the nonpartisan Congressional Budget Office.And of course the result, given the massive increases in military spending, has been an explosion in the deficit.
In a sign that Mr. Bush's tax cuts have had a bigger impact on the federal deficit than administration officials have often suggested, personal and corporate income taxes are both lower than they were in 2000 even though personal income and corporate profits are both substantially higher.
Notable are the gains for corporations from Bush's tax cuts:
Corporate profits have climbed about 40 percent over the same period, but corporate tax revenues were $18 billion lower in 2004 than in 2000.
Posted by Nathan at October 8, 2004 07:37 AM