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Bush Era Tax CutsSofiane Hadjar
History of Tax Cuts
1981- President Ronald Reagan cut tax rates by 23% at a cost to the
government of over $750 billion.
1989- George H.W. Bush, raised taxes contrary to his electoral race
promises
1993- Bill Clinton took office and faced a $300 billion deficit. Cut government spending by $247 billion and raised taxes on top
earners. That move, and later tax cuts, resulted in a budget surplus in 1998.
2000- George Bush came into office with a $230,000,000,000 surplus. Campaigned on getting the money back to the people
History of Tax Cuts
2001-Economic Growth and Tax Relief Reconciliation Act of 2001 Congress approved Bush’s $1.3 trillion tax cut
plan Lowered income tax 3-5% Phased out the Estate Tax Reduced the Marriage Penalty Doubling the per Child Credit
Called to expire in 2010
Current State
Tax Cuts have been extended through 2012
The debate at the end of 2010… Obama-extend the tax cuts for anyone
making less than $250,000 a year.▪ Had to settle
Class Warfare? Rich? or Job Makers?
Opposing Viewpoints
For Taxing the Wealthy Against Taxing the Wealthy
•Revenue for defense, education, health care, social security, and so many other needs must come from somewhere.•The rich already have enough money to live a great lifestyle; it won't hurt them as much to increase their taxes.•With our national debt rising to unstable amounts, revenue has to be collected, rather than cut.•The power of rich individuals such as Bill Gates and Warren Buffett must be contained by limiting their wealth.
•The rich always alter their spending, investment, work, and tax behaviors in response to rate increases. Revenue brought in to the federal government can decrease.•Taxing the rich will only take money from the Private Sector to the government where it is spent on special interests and irresponsible bailouts.•It provides less incentive for government to cut spending and reduce its size & intrusion into our lives.
The Laffer Curve
Cuts are Extended for All
Cuts Expire for the Rich
Cuts Expire for All
10 % 10 % ------
15 % 15 % 15 %
25 % 25 % 28 %
28 % 28 % 31 %
33 % 36 % 36 %
35 % 39.6 % 39.6 %
OBAMA
Obama/Democratic Position
Extend Tax Cuts only for people making under $250,000 a year
Lost negotiations Extended bush tax cuts
Republican Party Position
Extend Bush Tax Cuts, even for the greater than $250,000 bracket
Promotes Low Taxes for All Lower taxes=incentive to invest
Mitt Romney
Cut taxes 19 times as MA governor Never opposed 2003 Bush cuts, but
never supported
Michele Bachmann
Adopt a single-rate tax system Repeal the Death Tax Promoted as small-government, low-
taxes Candidate
Rick Perry
Balance our budget without raising taxes
Promises Tax Reform, No New Stimulus Programs
Herman Cain
Federal government taxes too much and too often
Abolish the IRS Implement 23% national sales tax
Bibliography
"Barack Obama on Tax Reform." OnTheIssues.org - Candidates on the Issues. Web. 14 Sept. 2011. <http://www.ontheissues.org/2008/barack_obama_tax_reform.htm>.
"Barack Obama on the Issues." OnTheIssues.org - Candidates on the Issues. Web. 14 Sept. 2011. <http://www.issues2000.org/Barack_Obama.htm>.
Gale, William G. "Five Myths about the Bush Tax Cuts." The Washington Post: National, World & D.C. Area News and Headlines - The Washington Post. Web. 14 Sept. 2011. <http://www.washingtonpost.com/wp-dyn/content/article/2010/07/30/AR2010073002671.html>.
"Herman Cain on the Issues." OnTheIssues.org - Candidates on the Issues. Web. 14 Sept. 2011. <http://www.issues2000.org/Herman_Cain.htm>.
Lowrey, Annie. "Bush Tax Cuts 10th Anniversary: They've Been a Failure in Every Conceivable Way. - By Annie Lowrey." Slate Magazine. Web. 14 Sept. 2011. <http://www.slate.com/id/2296578/>.
Mencimer, Stephanie. "The Bush Tax Cuts: Ten Years Later | Mother Jones." Mother Jones | Smart, Fearless Journalism. Web. 14 Sept. 2011. <http://motherjones.com/mojo/2011/06/10th-anniversary-bush-tax-cuts>.
"Michele Bachmann on the Issues." OnTheIssues.org - Candidates on the Issues. Web. 14 Sept. 2011. <http://www.issues2000.org/Michele_Bachmann.htm>.
"Mitt Romney on the Issues." OnTheIssues.org - Candidates on the Issues. Web. 14 Sept. 2011. <http://www.issues2000.org/Mitt_Romney.htm>.
"Rick Perry on the Issues." OnTheIssues.org - Candidates on the Issues. Web. 14 Sept. 2011. <http://www.issues2000.org/Rick_Perry.htm>.
Sahadi, Jeanne. "FAQ on Bush Tax Cuts: What You Need to Know - Sep. 15, 2010." CNNMoney - Business, Financial and Personal Finance News. 15 Sept. 2010. Web. 15 Sept. 2011. <http://money.cnn.com/2010/09/15/news/economy/bush_tax_cuts_faqs/index.htm>.