Tax Cuts...Good or Bad?
George Bush Junior’s tax cuts made a lot of Americans very happy because Bush promised them more money in their pockets which would bring them out of the recession. Most Americans knew that this would obviously decrease the amount of money that the government would take in, which would create a deficit. What they didn’t know, was that this deficit would be over $300 billion in the fiscal year ending Sept. 30. To counter this, the Bush administration came up with a $550 billion cut in government spending spread out over 10 years, which was eventually passed by the senate as $350 billion over a decade. Because of this, Congress plans to request for a $984 billion increase in the nation's $6.4 trillion debt limit to make room for further deficits. The International Monetary Fund says that the tax cuts couldn’t have come at a worse time because of the soaring costs we will face for Medicare and Social Security after the baby boomers retire. The Joint Committee on Taxation says that the tax cut will probably create a short-term boost to the economy, but will eventually slow the economy in the long run because of deficit spending. I support my Uncle George completely…in my opinion, there isn’t another that has stepped up that can do a better job. However, when President Bush was faced with the situation he was faced with, he should have told the American people the possible solutions. We could either wait it out like his father and point out the fact that our economy did recover and is in good shape, or we could have the tax cuts, but explain the negative effects that it would have in a few years and tell the voters that you aren’t just ignoring the situation, that you are going to just sit on your hands and let the invisible hand take care of us, just like it did before. He should have explained that he wants what is best for the country he loves, so he will not impose tax cuts that would help right now, but hurt us more in the long run.