Bush Tax Cuts
NPR had a story today about the tenth anniversary of the Bush Tax Cuts, but they never mentioned that when the tax cuts were passed, everyone knew that they would blow up the budget and so to make them "affordable", the cuts were due to expire after 10 years. The fact that these tax cuts were unaffordable even then was known by everyone. Here's David Stockman, Ronald Reagan's budget director, laying out the facts last fall on NPR about how these tax cuts were destined to make the USA bankrupt based on the fallacy of supply side economics:
The second thing was the perversion of supply side. Yes, there was a good idea that in certain circumstances, lower tax rates will encourage economic activity and savings. But when you make it a religion, when you make it a catechism and you say you cut taxes no matter what the circumstance, what the season, what the condition, then I think the whole idea has been perverted.
By getting off track over the last 30 years, the Republican Party has basically given up its historic view that the key thing was financial discipline, financial responsibility, and that we had to live within our means. Today, we have two free lunch parties and as a result, we're borrowing ourselves into grave danger with each passing month and year.
You would think NPR could have at least provide the context of why we are in such a desparate mess regarding our financial affairs and that one of the main ways we could fix the economy would be to end the Bush Tax Cuts now and get our house back in order.