True Cost of the Bush Tax Cuts
In the last four years of the Clinton administration the Federal
budget was balanced, and the U.S. Government had surpluses.
- 1997-1998 - $69,270,000,000
- 1998-1999 - $125,610,000,000
- 1999-2000 - $236,241,000,000
- 2000-2001 - $128,236,000,000
This degree of fiscal responsibility can largely be attributed to
the desires of the American people. It should also be noted that the
Republicans held the majority in both the House and the Senate at for
one of the four years there were surplusses.
The Bush administration, through HR 1836 over his term cut taxes. In seven of
his eight years in office the American people recieved a reduction of Federal
The tax cuts were debt financed.
In 2005 the cost of the Tax Cuts was $929 billion dollars, $69 billion being in interest payments.
(source: http://tinyurl.com/yjnallo). The
cost of the debt financed Bush tax cuts is 2.48 trillion dollars from 2001-2010.
It is also important to understand that after 2010 we will still owe money on
these tax cuts and still being paying interest on the debt. Also, you need to
keep in mind that the tax cuts represent revenue lost.
What did the American People Get for 2.48 Trillion?
When numbers like billions and trillions get thrown around many of us seem to glaze
over. These numbers are very impersonal. When we all file our tax returns we all use
the Federal Tax tables. So, I downloaded the tax tables from 2001 through 2008. Since
the tax tables are what we all use to file they provide a very accurate answer to this
question. To keep things simple I calculated the tax savings over the 8 years period
and then calculated the average monthly amount realized in tax savings over that period
of time. Here is what I came up with.
Gross Income Savings Extra
(Married Joint) % Monthly Income
_______________ _______ ______________
$25,000 1.1% $2.80
$50,000 1.3% $7.55
$95,000 2.8% $39.55
To keep things simple I am only presenting data for Married couples filing jointly.
This filing status received the best deal.
To recap. Our government debt financed three tax cuts. You can see what you got in
On February 4th RNC Chairman Michael Steele speaking at the University of Arkansas
at Little Rock, in response to President Obama’s plan to let the Bush tax cuts expire
on families making over $250,000, Steele said: "Trust me, after taxes, a million
dollars is not a lot of money."
Who Voted Yes to the Debt Financed Tax Cuts
VOTING YES ON HR 1836
Kay Bailey Hutchison,