Skip to main content

View Diary: CBO echoes Bernanke: Immediate spending cuts could hurt recovery (29 comments)

Comment Preferences

  •  I heard this explained a while back. (0+ / 0-)

    If I recall correctly, it's because the tax cuts had an initial effect of spurring the economy so it kept the cost from spiraling upward.  Very soon afterward, however, the upward wealth distrabution those cuts created began to negatively affect our economy so the effect on the debt exploded.

    "Put on your high-heeled sneakers/it's Party time" - Steely Dan.

    by rainmanjr on Wed Jun 22, 2011 at 02:33:31 PM PDT

    [ Parent ]

    •  There were two Bush tax cuts (2+ / 0-)
      Recommended by:
      rainmanjr, maybeeso in michigan

      The first cut marginal rates, in 2001  The second cut the dividend rate from ordinary I come rates to a flat 15% and lowered the capital gains rate by 5%, in 2003 I believe.  There were various other provisions. I think the so-called "investment tax cuts" the second ones, are the  ones that really skewed income to the top people.  They may have made more difference over time.

      The scientific uncertainty doesn't mean that climate change isn't actually happening.

      by Mimikatz on Wed Jun 22, 2011 at 03:07:13 PM PDT

      [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site