In the State of the Union address last night, Barack Obama said:
As we stabilized the financial system, we also took steps to get our economy growing again, save as many jobs as possible, and help Americans who had become unemployed. That’s why we … passed 25 different tax cuts. Let me repeat: we cut taxes. We cut taxes for 95% of working families. We cut taxes for small businesses. We cut taxes for first-time homebuyers. We cut taxes for parents trying to care for their children. We cut taxes for 8 million Americans paying for college. As a result, millions of Americans had more to spend on gas, and food, and other necessities, all of which helped businesses keep more workers. And we haven’t raised income taxes by a single dime on a single person. Not a single dime.
But most of the tax cuts were temporary tax cuts. And a lot of what Barack Obama calls “tax cuts” were actually payments to people who do not pay taxes.But let’s take him at his word, however hard it may be to do that. If cutting taxes helped get “our economy growing again,” why does he want to let the Bush tax cuts expire?I know the liberal spin is that they were tax cuts for the rich. But that’s really not true. When you examine the Bush tax cuts, you’ll find they were targeted to jump start the economy out of the Clinton recession of 2000. And they worked.Obama said last night that “we cannot afford another so-called economic “expansion” like the one from last decade – what some call the “lost decade” – where jobs grew more slowly than during any prior expansion”, but that is another lie. Until the Democrats took back Congress in 2006, the Bush economic expansion saw the lowest unemployment in American history.It was only after the post-Enron effects of Sarbanes-Oxley regulations, outrageous government spending, and capitulation with the Democrats on key economic issues that the economy went back in the crapper.The Bush tax cuts worked. Obama recognizes that tax cuts grow the economy. So why let the Bush tax cuts expire when they got us to the lowest unemployment in American history?