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Are the Bush Administration tax cuts the main reason why we're in debt?
Despite the war?
I'm not choosing any side yet, I truly want to hear what everyone has to say.
- cadcommando2003Lv 61 decade agoFavorite Answer
smile? If you truly want an objective answer on this question, I challenge you to do the research for yourself using OBJECTIVE sources and discover for yourself the TRUTH that tax cuts pay for themselves. You can do this be looking up Treasury Department statistics giving detailed information about how tax cuts ALWAYS increase revenues. Quite simply, tax cuts pay for themselves! Look up the tax cuts of the 20s, 60s, and 80s. Specifically the Kennedy tax cuts of the 60s and find out what Kennedy had to say about tax cuts. Once you have done that, look up the Reagan tax cuts of the 80s and notice the record (at the time) level of revenues tax cuts generated.
This myth that a tax cut costs the government revenues is just that - a myth. And how did it become the prevailing thought every time tax cuts are mentioned? Because the first words out of the mouth of a liberal when the topic of conversation is tax cuts is, "how are you going to pay for that cut?" The media and dare I say repubs have given the libs free reign to spread disinformation about what tax cuts do and do not do and because of this, the libs monopolize the talking points and sound bites on the issue. Somehow, in the process of time, the facts and how history clearly vindicates tax cuts increasing revenues has been lost or become irrelevant because libs have lied to us and distorted the facts for so long that many people have had the wool pulled over their eyes. They are no longer interested in the lessons that history can teach us today!
Google search tax cuts and revenues generated from tax cuts and your answer will be nestled among those sources that are objective and have no political or party axe to grind.
- Anonymous5 years ago
No. It is a major reason for the deficit, but the principal reason is the recession. Until the recession hit, we had a big enough tax base to make the Bush tax cuts only somewhat harmful to our deficit. Once the recession hit and we didn't have any surplus saved up in good times, it was a disaster. Add to that the 2 major wars and the actions taken to combat the recession, and that's pretty much the whole deficit. The debt, though, has been growing rapidly since the 1980's when Reagan started cutting taxes and dramatically increasing military spending, which didn't end even after the cold war was over. Before that, we were in the long process of paying off WWII debt, combined with other sources.
- Anonymous1 decade ago
There are basically four reasons why the government has such a large debt:
1) 2001 tax cuts
2) wars and Pentagon budget
3) Deregulation that led to economic meltdown, leading to need for bank bailout and stimulus
4) Lost revenue due to economic decline
More importantly than current debt is what the government is doing to solve the unemployment problem. The stimulus is too small, and all this focus on debt is confusing people. The priority should be to spend more money now so that the economy would grow, therefore automatically paying off the debt due to increased revenues.
Suggestions that keeping the tax rate at its current low rate for the wealthy will magically raise government revenues when it hasn't happened since the law was passed in 2001 is utter nonsense.
- BobberKnobLv 61 decade ago
Of course not, that is just Liberal Propaganda.
The main factor for the massive debt is excessive spending, and low tax revenue from a recession brought on by:
a) the "Dot Bomb" 1999-2000
b) 9 11 2001
c) The real estate collapse 2007-current (Initiated in the late '90's by Alan Greenspan)
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- megLv 71 decade ago
Bush's tax's cuts and increases in spending account for over half with the spending increases a little more than than the tax cuts. Most of the rest is the reduction in revenues due the recession wit about 10%-15% in the stimulus and Obama's programs see details at
- LeeLv 71 decade ago
Reagan, Bush I and Bush II, yes, they are mostly responsible.
*Edit* Let's use your household as an example of conservative logic. Conservatives say cutting taxes increases revenue. That's the equivalent of saying you're going to quit your full time job and take a part time job to increase your take home pay, does that make any kind of sense to you? Let's continue.
They claim tax cuts pay for themselves because people will work harder and in the end we'll collect more tax revenue. So people suddenly become patriotic and want to pay their taxes when the tax rate is cut? Hmm, would you give a thief more than he was going to take from you because he decided he didn't want your T.V? Would you be grateful he was so kind and give him the key to your safe deposit box with all of your rare coins and jewelery hidden away in there? I wouldn't. So if their policies don't make sense on a personal level, do you think it makes sense on a national level?
- 1 decade ago
Thinking that tax cuts are the reason for debt is the same thing as thinking that paying less than the balance on your credit card is why you're in debt. You (i.e., "we", not you personally) are in debt because you charged things. As to who did it, research it and be your own judge.
- smsmith500Lv 71 decade ago
No, the over spending by the current administration is the main reason we are in debt.
- 1 decade ago
but I prefer to state it this way to be more accurate, We are in debt because our politicians believe in spending money from the government coffers that is not there ....money that is not there because our politicians do not wan to tax the rich as much as they used to be taxed back in the USA's hey day of economic boom...a time by the way when deficits were minor compared to what we have today.
So, to summarize, we are in debt because we spend money that we do not have while not wanting to raise the taxes to pay for those expenses.
- 1 decade ago
Nope the Democrats caused this mess.But that s going to change in November.