Cool and Level-headed
Geek Stuff (Or The Sleek in Nose)

A Deficit, Alright

A letter from Canada to The Daily Times:

When US President Bill Clinton entered the White House, his first act was to increase the taxes on wealthy Americans to stem a runaway budget deficit. Clinton’s tax hike, denounced by the Republicans as ‘a passport to recession’, balanced the budget, produced a huge surplus, lowered the long-term interest rate and triggered the longest economic boom in the recent history of the country.

I find it odd that none of the Democrats today wish to repeat the "Clinton Formula" of success. Why don't they "trigger" another economic boom by raising taxes? I'm curious to hear their answers.

President George W Bush has squandered the surplus with his massive $1.67 trillion tax cut for the wealthy and produced a $400 billion deficit.

The $1.67 trillion tax cut was for the wealthy? That's news to me. Another question: how does a $1.67 trillion tax cut, spread over 10 years, cause approximately $400 billion deficits every year? Isn't it possible that there might be other, major, factors at play? For example, increased government spending and an economic downturn.

To pay for the massive tax cuts for the rich and to finance his war in Iraq, Bush has cut spending on education, health care and other essential public services.

Ok, now I'm confused. I thought President Bush was pushing up the deficit, or borrowing money, to pay for the tax cut. Now, you're saying he is cutting spending (which btw he isn't).

Read the whole letter here; it's titled Taxes and Bush. The letter was sent to a Pakistani website but the writer lives in Canada. He must be getting his economics news from a really awful source.


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