Wednesday, October 27, 2010

Bush Tax cuts didn't work

There's a right wing bias in the media that tax cuts will bring economic growth. That's clearly not true since the Bush tax cuts at issue have been in place since 2003 and 2001, and they failed to prevent such a deep recession.

Imagine if we raised taxes in 2003, Republicans would blame that for the economy. The truth is tax policy has a small effect. The business cycle and regulation (or lack of) has much more to do with it.

So when you hear how dangerous it will be to raise taxes in a recession, realize in a free market, by definition the government policy isn't that important and we like it that way.

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