Selling Bush Tax Cuts the Journal Way

The expiration of George Bush's 2001 and 2003 tax cuts and how it plays out in this fall's election cycle is the crux of the WSJ article, Bush-Era Tax Cuts Likely Election Theme - WSJ.com.

The Journal claims that "Given the uncertainty of the Senate outcome, the strategy offers the GOP a chance to accuse Democrats of planning to raise taxes on most Americans, by allowing all the Bush tax cuts to lapse. The cuts, passed in 2001 and 2003, will expire on Jan. 1, 2011, unless Congress passes legislation to extend them..."

It does not go on to cite any facts or inconsistencies in the positions...

January 20, 2001: George W. Bush assumes office

June 7, 2001: President George W. Bush signed into law Thursday the first major piece of legislation of his presidency, a $1.35 trillion tax cut over 10 years. CNN.com - $1.35 trillion tax cut becomes law - June 7, 2001: "On Saturday, just hours after the measure passed both houses of Congress, Bush rushed back to the White House from his Camp David retreat to hail the measure as 'historic' and the 'responsible thing to do for the American people and the economy.'"

Total Federal Debt, as of 09/30/2001 (beginning of first Full FY under GWB) : $ 5,807,463,412,200.06

May 23, 2003: Bush Signs Tax Cuts Into Law - CBS News: "'We are helping workers who need more take-home pay,' he said. 'We are helping seniors who rely on dividends. We are helping small business owners looking to grow and create more jobs. We are helping families with children who will receive immediate relief.'...Senate Majority Leader Bill Frist countered that spending the money now will create a healthy economy that will help the nation eliminate shortfalls later on. 'I don't like the fact that we are having to borrow money today,' Frist, R-Tenn., said on PBS. 'But ... by giving individuals more money to spend and also creating more jobs in the economy, we will be able to grow that economy, which over time will make that deficit disappear.'"

Total Federal Debt, as of 09/30/2009 (end of final Full FY started under GWB): $ 11,909,829,003,511.75

Increase in Federal Debt from 2001 to 2009: $ 6,102,365,591,311.64 or 105%.

Now: With Bill Clinton:

Total Federal Debt, as of 09/30/1993: $4,411,488,883,139.38

Total Federal Debt, as of 09/30/2001: $ 5,807,463,412,200.06

Increase in Federal Debt: $ 1,395,974,529,060.68 or 32%

Increase in Federal Debt, Bush - Clinton = $ 4,706,391,062,250.96.

Bush increased the federal debt by 4.37 times the increase under Clinton.

(sources: treasurydirect.gov and whitehouse.gov)

*** The Republicans and WSJ use every opportunity to scare the public about the fiscal deficit. Republicans eagerly block spending policies like the extension of unemployment benefits, but in the same breath are willing to blame the Democrats for letting the tax cuts expire. The fiscal deficit is perhaps curable, moral deficit may not be.