Sep 25, 2010

GOP economics of failure

As in 2000, Republicans run today on a platform of tax cuts, especially making cuts permanent for the richest. How did the tax cuts succeed? Analysis of 8-years—2008 dollars:

Total tax revenue was $2.74 trillion less during the Bush years than if incomes stayed at 2000 levels.

Average incomes fell. Average taxpayer income was down $3,512, or 5.7 percent, in 2008 versus 2000, President Bush's own benchmark year for his promises of prosperity through tax cuts. Wages, as source of most people's income fell.

In 2008, the average taxpayer made $58,000—$5,100 less than 2007, down 8.1 percent. Had incomes stayed at 2000 levels, average taxpayers would have made almost $21,000 more over those 8-years—about $50 per week.

[IRS Income Statistics, David Cay Johnston, Tax.com]

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