A recent OpinonJournal.com article points out how well the economy is doing after the Bush tax cuts & goes a long way towards debunking the notion that Democrats try to put forward, that tax cuts create deficits & somehow hurt the economy. Here's the #'s in the article that provide the relevant stats:
That growth was underscored again with yesterday's buoyant jobs and income report for December. Job growth exceeding expectations at 167,000 and the jobless rate held at a very low 4.5%, despite a slowdown in manufacturing and construction. Since the Bush tax cuts on dividends and capital gains passed in mid-2003, the economy has created 7.2 million new jobs according to the survey of business establishments, and an additional 1.2 million in the more variable household survey.
As for the inevitable political complaints that these new jobs are all lousy, average hourly non-supervisory wages have now climbed 4.2% over the past 12 months, or twice the official rate of inflation. With flat or falling energy prices, and a tight labor market, real wages are also starting to show impressive gains.
Meanwhile, tax revenues continue to roll into the Treasury and state coffers. Federal receipts rose by 14.6% in fiscal 2005, another 11.8% in 2006, and kept rising by 9% in this year's first two months despite slower GDP growth. The budget deficit, in turn, has fallen by $165 billion in two years, and including state surpluses is now down to about 1% of GDP, which as an economic matter is negligible. Tax revenues as a share of the economy are also back above 18.5%, which is their modern historical norm.
The questions that Democrats need to answer is:
*How is it that after the Bush tax cuts, the budget deficit is being reduced?
*How is it that after the Bush tax cuts, revenues to the Government increased?
After all, is it not their argument that tax cuts reduce revenues to the Government?