Flip, Flop, Flip… Now Obama Wants to End Bush Tax Cuts
During the 2008 election and most of last year Barack Obama railed against the successful Bush tax cuts.
Then in December Obama changed his tune saying the Bush tax cuts were a “good deal for America.”
Today Mr. Fickle’s back bashing the Bush tax cuts.
President Barack Obama enters politically tricky territory Wednesday when he outlines his plan for reducing long-term deficits and the national debt amid a climate of tense budget negotiations.
A senior administration official confirmed that the president will renew his call to end the Bush-era tax cuts for families making over $250,000 a year, a proposal that Republicans fiercely oppose.
“We can’t tax the very people we expect to reinvest in our economy and create jobs,” House Speaker John Boehner, R-Ohio, told reporters. “Washington has a spending problem, not a revenue problem.”
“Many of us approach this speech with … high hopes and low expectations,” said Rep. Jeb Hensarling, R-Texas.
During the Bush years, despite the 2000 Recession, the attacks on 9-11, the stock market scandals, Hurricane Katrina, and wars in Iraq and Afghanistan, the Bush Administration was able to reduce the budget deficit from 412 billion dollars in 2004 to 162 billion dollars in 2007, a sixty percent drop. In 2004 the federal budget deficit was 412 billion dollars. In 2005 it dropped to 318 billion dollars. In 2006 the deficit dipped to 248 billion dollars. And, in 2007 it fell below 200 billion to 162 billion dollars. During the Bush years the average unemployment rate was 5.2 percent, the economy saw the strongest productivity growth in four decades and there was robust GDP growth. This was due to the Bush tax cuts.
More… Bush tax cuts resulted in record tax revenue.
The President’s tax relief was followed by increases in tax revenue. From 2005 to 2007, tax revenues grew faster than the economy. The ratio of receipts to GDP rose to 18.8 percent in 2007, above the 40-year average. Between 2004 and 2006, capital gains realizations grew by approximately 60 percent. Growth in corporate income tax receipts was especially strong in the President’s second term, nearly doubling between 2004 and 2007 and contributing a full percentage point to the increase in the total federal receipts-to-GDP share.