Summary
The charges lodged against the 2001 and 2003 tax cuts are deceptively simple: They have dramatically reduced government revenues, causing big, long-term deficits that will hurt the economy by driving up interest rates.
But it's a case that doesn't withstand scrutiny. This is partly because of the tenuous relationship between deficits and interest rates. (If deficits have such an adverse effect on interest rates, why are the rates lower today than during the surplus years?). But it's mostly because long-run deficits are caused by growth in government spending.See the full content of this document
Extract
Greatest Threat to Prosperity
Tax cuts certainly aren't to blame. From 1951 to 2000, federal tax revenues averaged 18.1 percent of gross domestic product (GDP). Tax-cut opponents often imply President Bush's tax cuts emptied gove...
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