The Bush tax cuts, which were supposed to help lead to a more prosperous economy, have actually cost Americans as much as $6.6 trillion in personal income. An amount that could easily pay for every car loan, student loan, and all credit card debt in the United States.
The information comes from a column on Al Jazeera America Wednesday. According to the author, David Cay Johnston, after adjusting for inflation and comparing average income with that of 2000, he found a $6.6 trillion disparity.
“Consider what $48,000 of additional income over those 12 years would have meant to you,” he wrote. “It is the equivalent of $11 appearing in your wallet every morning from the start of 2001 through the end of 2012.”
“Had that $6.6 trillion shortfall been realized as income, it would have been enough to pay off all the student loans in the United States ($1.26 trillion), all the automobile loans ($892 billion) and all the credit card debt ($827 billion). After paying all that debt off and taking taxes into account, American still would have more than $2.4 trillion left in their pockets and bank accounts.”
Johnston went on to point out that Bush sold the tax cuts as ensuring the future prosperity of America.
“In a December 1999, speech to Iowa voters, the future President Bush vowed, if elected, to put into law a ‘tax cut designed to sustain our nation’s prosperity – and reflect our nations decency … The entrepreneurs of America create jobs, take risks and make their profits with honor. My tax cut plan will expand their ranks by encouraging American enterprise … Low tax rates are a powerful economic tool to promote a higher standard of living for all Americans.”
Well, now we see how that worked out. Are we going to change course or just continue with the same failed policies?