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Wednesday, November 29, 2006
Bush Still Loves Tax Cuts, Advisor Says
Allen Hubbard, president of the National Economic Council (Bush's economic advisors), wrote to the Washington Post yesterday on a familiar subject- tax cuts (emph. mine).
There is no denying that the president's tax cuts and other pro-growth policies have played an important role in spurring the economic expansion we've seen under this president. More than 6.8 million jobs have been created since August 2003; the unemployment rate is 4.4 percent; and real wages have grown 2.8 percent over the past 12 months. We've also proved that you can have tax cuts that result in robust revenue growth.
It's hard to pin down exactly what factual claim Hubbard is making here, but the message is clear: trickle down economics works, the Laffer curve has been borne out, and all that. But none of this has been proven. If anything, it's been disproven.
Now, of course, the Bush administration and Congressional conservatives have been saying this sort of thing for a while, despite all evidence to the contrary. What's new is that the election does not seem to have changed their position. And if Hubbard's letter is any guide, neither has the election changed their position on the Bush tax cuts.
We look forward to hearing the Democrats' ideas to promote continued economic growth. We will be looking for common ground while remaining true to the president's principles -- most importantly, keeping taxes low.
Posted by Matt Lewis
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