From The 2009 Budget Deficit: How did we get here? by John Irons, Kathryn Edwards, and Anna Turner:
This Issue Brief examines the details and causes of the current budget deficit and the role the current recession has played. The years between 2001 and 2007 saw a large deterioration in the budget balance, which was driven chiefly by legislated policy changes. The Bush-era tax cuts are the largest contributors to this period of policy-induced increases to the federal budget deficit. . . .
Originally published at Econbrowser and reproduced here with the author’s permission.
One Response to “The Lasting Legacy of the Bush Tax Cuts”
Guest • September 2nd, 2009 at 11:47 am
What year did the tax cut take full effect?What factor did 9/11 have?What factor did the 2000/2001 recession have?Why not just a simple chart shoeing revenue and spending? Or would that show an increase in revenue after the tax cuts took place and economy expanded to produce more revenue?Until we recognize we have a spending issue we are toast.If higher taxes will resolve the issue why not raise the rate to 80% for everybody – according to the above logic that would bring in lost of revenud!
