Implementing the Bush tax cuts cost the US Federal government trillions in lost revenue and the budget deficits grew and grew. The tax burden was passed from the highest income earners to the lower incomes earners. Lower income earners actually had to pay more than tax than they did before the Bush Tax cuts. Middle and highest income earners were better off, but the 80% lower income earners well they foot the tax bill.
Public services: education, transport and health funding were reduced to make. The Bush tax system was a flat tax system, regressive system that favours the higher income earners at the expense of the lower income earners. Bush Tax cuts played a pivotal role in the Increasing budget deficits and mounting public Increased government expenditure on Military, increased the deficits.
However we can believe in the opposite of reality. Bush Tax cuts were good for all income earners and everyone was better off. Free market capitalist fairy tales are good. Who needs services, when you have more money in your back pocket? Tax cuts are always good and everyone surely benefits with paying less taxes?
The tax system needs to be fair and balanced: tax too much then the economy fails, tax not enough and the economy fails. A progressive tax system is much better than a regressive tax system. The tax rates need to be set at the optimal levels than encourages business activity and encourages economic growth.
Trickle down economics does not work. The rich business owners will keep their tax cuts and put the savings in the bank or invest in property and shares. Very rarely do the rich business owners set up new businesses or employ more workers with their generous tax cuts. If they expand businesses it would be setting up shop offshore and exploiting cheap Asian labour markets and save on labour costs.
