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>.