Tax cuts caused the deficit?
Fri Jul 15, 2011 12:12 pm
Obama had a press conference in which he claimed that the only reason that the deficit is what it is is because of tax cuts.
This is such an easily disprovable lie, I have to wonder what is going on here.
Let's look at historical government revenue as a percentage of GDP. If the deficit is caused by low taxes, then, naturally, we should be paying lower taxes as a percentage of GDP.
Presumably due to tax brackets lagging behind inflation, we were already at a maximum when it comes to taxes as a percentage of GDP before everything jumped off a cliff in 2008. Taxes *are* at a historical high.
Now, OTOH, look at government spending as a percentage of GDP:
We've jacked up government spending from 35% to 42% of the GDP in just a few years, and they have the audacity to tell us that tax cuts were what caused the deficit?
This is so depressing.
This is such an easily disprovable lie, I have to wonder what is going on here.
Let's look at historical government revenue as a percentage of GDP. If the deficit is caused by low taxes, then, naturally, we should be paying lower taxes as a percentage of GDP.
Presumably due to tax brackets lagging behind inflation, we were already at a maximum when it comes to taxes as a percentage of GDP before everything jumped off a cliff in 2008. Taxes *are* at a historical high.
Now, OTOH, look at government spending as a percentage of GDP:
We've jacked up government spending from 35% to 42% of the GDP in just a few years, and they have the audacity to tell us that tax cuts were what caused the deficit?
This is so depressing.