Posted by: The Dauntless Conservative | August 14, 2010

Bush Tax Cuts Worked


The economy is struggling and Chairman Zero is clueless as to what makes the American economy works. We should go back a little in history to see what actually works. So, let’s take a closer look, shall we. The Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) was signed by then President George W. Bush in May 2003 and the unemployment rate stood at 6.1%:

http://georgewbush-whitehouse.archives.gov/news/releases/2003/05/20030528-9.html

The unemployment rate (seasonally adjusted) started to drop soon after it was passed. The unemployment rate for June 2003 was 6.3%, July was 6.2% and August was 6.1%. So, now we see the rate go down and continued to do so until  November 2006, the unemployment rate stood at 4.5% when the democrat party took both the House and Senate. FACT: Demoncrats have never done anything to cause unemployment rate to do down.  In June, July and August 2007, it stood at 4.6% which now we see a trend upward at 4.7% in October 2007 and has not stopped since. As you can see, there is a strong, positive correlation between tax cuts, increase in revenue streams and the unemployment rate and the democrat party’s hot air. The leftist argument the Bush ran up the deficits is deflection. It is pointless to demonize Bush.

Every administration increases the debt load here:

http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt.htm

and obama’s democrat controlled Congress is running up the debt at a much faster pace than W ever did and CNN/MSNBC/ABC/CBS/NBC/NYT say nothing. From Bureau of Labor Statistics:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2000 4.0 4.1 4.0 3.8 4.0 4.0 4.0 4.1 3.9 3.9 3.9 3.9
2001 4.2 4.2 4.3 4.4 4.3 4.5 4.6 4.9 5.0 5.3 5.5 5.7
2002 5.7 5.7 5.7 5.9 5.8 5.8 5.8 5.7 5.7 5.7 5.9 6.0
2003 5.8 5.9 5.9 6.0 6.1 6.3 6.2 6.1 6.1 6.0 5.8 5.7
2004 5.7 5.6 5.8 5.6 5.6 5.6 5.5 5.4 5.4 5.5 5.4 5.4
2005 5.3 5.4 5.2 5.2 5.1 5.0 5.0 4.9 5.0 5.0 5.0 4.9
2006 4.7 4.8 4.7 4.7 4.6 4.6 4.7 4.7 4.5 4.4 4.5 4.4
2007 4.6 4.5 4.4 4.5 4.4 4.6 4.6 4.6 4.7 4.7 4.7 5.0
2008 5.0 4.8 5.1 5.0 5.4 5.5 5.8 6.1 6.2 6.6 6.9 7.4
2009 7.7 8.2 8.6 8.9 9.4 9.5 9.4 9.7 9.8 10.1 10.0 10.0
2010 9.7 9.7 9.7 9.9 9.7 9.5 9.5 9.6



SOURCE: Bureau of Labor Statistics http://www.bls.gov

Later, the Department of the Treasury release reports that federal revenue increased after it was passed, which indicates the economy had been stimulated, businesses hire and invest and unemployment rate drops which expands the tax bases that brings in the revenue. Notice how the month the unemployment rate starts a downward trend and revenues go up with the month the JGTRRA was passed. Arthur Laffer was right. Note the chart from the link below:

 

Source:      http://www.treasury.gov/press-center/press-releases/Pages/js3048.aspx

And… the DJI had a steady growth until the October 2007 when it popped about 14000 points and took a nose dive. Remember, democrats took both House and Senate after midterm elections in November 2006. It is not a surprise to me the DJI tanked later in 2007 with the anti-capitalist and anti-business policies of the democrat party. From Bigcharts.com:


Do you miss me yet? http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=djia&sid=1643&o_symb=djia&freq=2&time=13

Now, since January 2007, with a democrat controlled Congress, they control the purse strings,  As far as I am concerned, I have presented enough evidence that convinces me that the JGTRRA worked and that the freedom and entrepreneurship of the American people works if allowed to. Chairman Zero & Co should have extended or better yet, went above and beyond the JGTRRA when he took office but he did not. We would have had quicker job creation, which I demonstrated, that can be best left to the entrepreneurship of American people than worthless massive spending that has sunk us into such deep apocalyptic debt, that I doubt the USA will ever get out of it. Government cannot create jobs other than government jobs. The democrat party argument about government contracts create jobs is false because it only benefits the government contractors it works with, not the economy as a whole.

“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence;nor is the law less stable than the fact”

-John Adams, 2nd President of the United States.

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Responses

  1. This is true without a doubt.
    Bush’s tax cuts worked and the financial crisis had nothing to do with the mainstay of Bush’s economic policy – which were these cuts.
    I agree with your presentation. We have several economic pieces at http://www.robbingamerica.com that would support this presentation.
    I like your blog and we are going to list it in our favorite list of Blogs.
    Good Luck.

    • Thank you John. You have a great blog as well. I am quite please with the outcome of the elections. I sincerely hope the Republicans don’t sit on their duff and forget why they are there and I hope the new freshman Tea Party candidates will remind the lackadaisical RINOs of it as well. If they are successful, the Republicans will take the WH and the Senate in ’12. Obamarx and Pelosi seem defiant to the American people and/or ear deaf, but if they continue to act the way they do, they will surely lose in 2012.

      The Dauntless Conservative

  2. […] plans in lieu of obamacare. (2) The expiration of the Bush tax cuts (which I explained here:  https://thedauntlessconservative.wordpress.com/2010/08/14/bush-tax-cuts-worked/)the extensions will be ending in Dec 31. That will be a big blow to small businesses. Demoncrats […]

  3. […] https://thedauntlessconservative.wordpress.com/2010/08/14/bush-tax-cuts-worked/ […]


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