What if the Bush tax cuts had never happened?
The Wall Street Journal published some great graphs and charts detailing the Federal budget over time.
Looking at the Cash Flow graph in particular, I noticed a striking decline in Revenue from 2000 to 2004 (i.e. G.W. Bush’s first term). When Bill Clinton left office, we had a healthy budget surplus. A trillion dollars later, we were back in the red.
I wanted to try something, so I adjusted the graph to erase the Bush tax cuts (shifting the revenue line up, represented in green below). Imagine my shock and surprise when I discovered that this adjusted revenue line coincided with spending estimates in 2015.
Now, I realize there are about a hundred holes in my logic here. I can’t move lines around on a graph and pretend that it represents an alternative history. Moreover, it’s a useless argument since we are where we are and we can’t go back in time. Even so, I think it’s important for us to realize the future costs of policy choices.
Filed under economics, politics : Comments (0) : Feb 2nd, 2010 by tadfad
