Capital Commerce

About Those 2001 Bush Tax Cuts ...

By James Pethokoukis

Posted: December 24, 2008

I was on  CNBC's Kudlow & Co. last night debating economist Heather Boushey from the Center for Economic and Policy Research. Boushey kept talking about how the 2001 and 2003 tax cuts didn't work. She failed to recognize that each represented different approached to tax policy and each had different results.

 My pay Jerry Bowyer adds this insight in an email to me:

What she seems to have missed entirely is that the 2001 tax cuts had nothing for investors and high income earners. Bush caved to the lefties and deferred the top bracket cuts several years into the future. When 2001 started, the top tax bracket was 39.6%. When it ended, the top rate was 39%. 2001 was liberal utopia, cuts for the poor and middle class and a lump of coal for the rich. When they declare it a failure, they implicitly declare their own populist economics a failure.

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Capital Commerce

Capital Commerce

U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

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