Tuesday, September 07, 2004

Tax Cuts

Apparently Congress is now reporting a projected budget deficit of 2.9 trillion dollars.

The NY Times recently reported that big government blossomed during Bush's reign. Salaries in the private sector were stagnant. The salary gains reported by the BLS were entirely the result of increased government pay.

Kowald Design has a nice graph showing budget deficits. The site fails to mention that, although the US had budget surplus, it is not stick to its budget and there was not a single year in the Clinton Administration when the US deficit actually dropped (See US Deficit). The fact that Clinton did not actually reduce the deficit despite the fact that every single star in the universe was aligned for economic growth is as bad a legacy as any of our last 50 years of presidents.

Mr. Bush, if you are listening, a tax cut ain't a tax cut unless there is corresponding cut in government spending. A tax cut funded by deficits is just a transfer of money between generations. The current $7.3 trillion dollar deficit is a disgrace.

Not surprising, the Democrats answer to the projected deficit is to ream America with a tax cut that will make our heads spin (Americans, bend over and prepare to give up your dreams!!!!!!!)

Apparently, the current crop of Republicans are simply happy that they are getting richer than ever.

On the bright side, many countries in the third world are realizing what American forgot--ie that the government is inherently inept. So when it is time for the American to drop into third world status, the billionaires created by Bush will be able to transfer their fortunes out of the US into a robust world economy (assuming that they transfer their money out of the US before hyper inflation or other economic crash wipes them out).

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