Running in the red: How the U.S., on the road to surplus, detoured to massive debt
So… when we were running a budget surplus under Clinton, the Republicans advocated for tax cuts because, essentially, the government was over-taxing it’s citizens. Then the Bush administration got two massive tax cuts that overwhelmingly benefitted the wealthy, didn’t pay for the Prescription Drug Plan and got into two massively expensive wars without paying for any of it. And even after all these tax cuts the economy fails in 2008 and Bush introduces TARP to bail out the banks. After Obama wins in 2008, he tries to revive the economy by borrowing more money and stimiulating the economy only to have these same Republicans advocate for MORE tax cuts while proclaiming the government still taxes it’s citizens too much… So the debt we have today, to a very large extent, is due to Bush economic policies in the 2000’s and, to a very small extent, Obama, in an attempt to revive the economy. The context is important to review.
And let me get this straight… Republicans want to cut taxes when you have a budget surplus AND cut taxes when you have a massive budget deficit and debt!? Is there ever a time to raise revenue with these guys? How little should taxes be to have an infallible humming economy and still provide the services that Americans require? Can someone explain to me how cutting taxes now will create any new jobs!? Aren’t corporate profits the highest they have been in our history?? Aren’t high corporate profits supposed to trickle-down to the masses through corporate hiring? So then where are the Jobs!!!??? (and I don’t mean McJobs either…)
Polls show that a large majority of Americans blame wasteful or unnecessary federal programs for the nation’s budget problems. But routine increases in defense and domestic spending account for only about 15 percent of the financial deterioration, according to a new analysis of CBO data.
The biggest culprit, by far, has been an erosion of tax revenue triggered largely by two recessions and multiple rounds of tax cuts. Together, the economy and the tax bills enacted under former president George W. Bush, and to a lesser extent by President Obama, wiped out $6.3 trillion in anticipated revenue. That’s nearly half of the $12.7 trillion swing from projected surpluses to real debt. Federal tax collections now stand at their lowest level as a percentage of the economy in 60 years. – Lori Montgomery