Top 5 Charts on the Bush Tax Cuts

June 7, 2011 at 4:32 pm

On the tenth anniversary of the 2001 tax-cut law, we’ve assembled five charts that show how the tax cuts have affected the deficit, the economy, and people’s incomes — and why letting them expire on schedule should be front and center during deficit-reduction negotiations.

Bush Tax Cuts Heavily Tilted to the Top

Bush Tax Cuts Did Not Spur Economic Growth

Economic Downturn and Legacy of Bush Policies Drive Record Deficits

Cost of Extending Tax Cuts Exclusively for Upper-Income Taxpayers Roughly Equals Social Security Shortfall

Letting Bush Tax Cuts Expire Would Halt Rise in Debt Over Next Decade

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More About Chuck Marr

Chuck Marr

Chuck Marr is the Director of Federal Tax Policy at the Center on Budget and Policy Priorities.

Full bio | Blog Archive | Research archive at CBPP.org

10 Comments Add Yours ↓

Comments are listed in reverse chronological order.

  1. 1

    Cutting tax rates cannot be a good economic policy simply because government does not manufacture goods. Let it be clearly understood that government relies on taxation for its revenue inflows that enhance and allow government to perform its numerous roles for society as a whole.

    Tax cuts reduce government revenues, and if we are to be credible, government should be allowed to increase taxes, particularly with the increasing population in the USA. There is no justifiable reason why rich people in this country should spend their millions to fight against, and block all possible channels, against tax increases. They have been blessed in America, and they each should demonstrate their gratitude to this country and all Americans.

  2. Carl Benson #
    2

    The graduated income tax is the fairest, and least painful tax for society. And
    THE BUSH TAX CUTS MUST EXPIRE NOW! as was originally planned for 2010.
    President Obama’s health care plan mainly benefits the health insurance industry; it needs revision so that the U.S. has a single payer health CARE plan.
    This revision is essentially the only way to: 1. provide health care to ALL citizens, and 2. to make bankruptcy for health care costs a thing of the past (as it is now in other countries).
    We MUST put priority on expiration of the Bush tax cuts as a non-negotiable part of governing for the future.

  3. Carl Benson #
    3

    The graduated income tax is the fairest, and least painful tax for society. And
    THE BUSH TAX CUTS MUST EXPIRE NOW! as was originally planned for 2010.
    President Obama’s health care plan benefits the health insurance industry; it needs revision so that the U.S. has a single payer health CARE plan.
    This revision is essentially the only way to: 1. provide health care to ALL citizens, and 2. to make bankruptcy for health care costs a thing of the past (as it is now in other countries).
    We MUST put priority on expiration of the Bush tax cuts as a non-negotiable part of governing for the future.

  4. Joyce Wood #
    4

    I’m always amazed when I hear people defending the tax cuts – people who will not benefit. I’m also continually amazed of the audacity of the Republicans who come right out and say what they are going to do and everyday people applaud them – example Wisconsin. And looking at Wisconsin, they now have a senate, house, governor and court that is now entirely run by the Republicans – the Unions don’t stand a chance. Why are we, as a nation, not demanding that these tax cuts be stopped – why are we not in the streets?

  5. taxed #
    5

    Since the mid 60′s we have spent $16 Trillion on means tested government income re-distribution programs. We are now $14 Trillion in debt and have 43 million people on food stamps, over 40 million kids getting free school lunches, 9 million more on WIC, about 8 million in subsidized housing, 5 million on TANF, 8 million on SSI (including 1.2 million kids), about 49 million on Medicaid and 71 million households not paying federal income taxes because of EITC and the Child Tax Credit. Does anybody really think more debt or taxes to pay for more income re-distribution programs is really going to help anything? How can a tax system be called “fair” when 47% of households are getting a free ride on the backs of the 53% who are paying income tax and carrying their own weight in society? What part of that is sustainable? What part of that is fair? And no – I am not wealthy, just sick and tired of paying other people’s bills while the poor folks “benefits” just keep getting passed from generation to generation.

  6. g'moms #
    6

    What will it take to get this obviously critical & FACTUAL information on the ‘news cycle’? It just isn’t sexy enough? It isn’t the type of ‘news’ Mitch McConnel wants in order to fulfill “my main goal to make Obama a one term President”? Good Luck trying to get ANY Republicans to talk some sense &/or honesty in this election cycle ESPECIALLY ABOUT THE BUSH TAX CUTS!!!!!

  7. Tom e #
    7

    What would happen if the capital gains tax break was eliminated for those who send their money overseas? The whole rational for giving capital gains a lower rate was to spur US job creation. It does not create US jobs when you invest in China.

  8. Jim Kainz #
    8

    The “secret” $600 trillion Derivatives Market which most Americans have never heard of presents an opportunity to pay off the National Debt without cuts to Medicare benefits. A small 0.5% transfer fee when these billion dollar contracts execute would raise over a half trillion dollars yearly in addition to any other deficit reductions we take. See “How to Pay Off the National Debt” by Kainz on amazon or barnesandnoble.com.

  9. Craig Thompson #
    9

    maybe Boner can read a chart?

  10. 10

    I knew all along that the Bush Tax Cuts would not work. If the U.S. has to be in 2 wars, then common sense would have raise taxes on the ones that can afford to pay more taxes. The richer people, large companies and corporations. The wise thing to have been done was to cut out corporate Welfare and all the tax write-offs so many richer people get. The results of tax cuts since 2001 have been 2.5 trillion dollars that could have went to better benefits for the lower middle class and poor income groups. The middle of the middle class and those in the high range of the middle class are mostly doing fine. Any family that nets less than $50,000.00 a year is not doing great with the high cost of living.



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