NYJetsFan.com Forums: The Bush Tax-Cut Failure - NYJetsFan.com Forums

Jump to content

Toggle shoutbox NYJETSFAN BANTER

Azjetfan is the nyjetsfan #1 pick
MikeGangGree... Icon : (13 May 2015 - 09:59 PM) HEY
MikeGangGree... Icon : (13 May 2015 - 09:59 PM) HEY HEY HEY
HarlemHxC814 Icon : (13 May 2015 - 10:15 PM) HALA HENRIK
HarlemHxC814 Icon : (13 May 2015 - 10:15 PM) f*** OVECHKIN
HarlemHxC814 Icon : (13 May 2015 - 10:15 PM) HOLTBY SUCKS
HarlemHxC814 Icon : (13 May 2015 - 10:15 PM) FIRE RAUL
MikeGangGree... Icon : (13 May 2015 - 10:39 PM) Did you say Raul?
MikeGangGree... Icon : (13 May 2015 - 10:39 PM) https://youtu.be/7iy3nui-aaI
HarlemHxC814 Icon : (14 May 2015 - 05:12 AM) HENRIK OVER RAUL
Jetsfan0099 Icon : (14 May 2015 - 01:31 PM) Dolphins hired Terry Bradway lol
azjetfan Icon : (14 May 2015 - 02:20 PM) Why would the Dolphins do that? Didn't he prove his incompetence with us?
santana Icon : (14 May 2015 - 03:00 PM) well hes been with the jets for years he was in charge of college scouting
santana Icon : (14 May 2015 - 03:00 PM) jets just let him go this year
santana Icon : (14 May 2015 - 03:00 PM) so im sure he will take a similar role with the dolphins as well as provide them a lot of insight about the jets
Jetsman05 Icon : (14 May 2015 - 04:34 PM) the barca madrid fan
Jetsman05 Icon : (14 May 2015 - 04:34 PM) Morataaaa
NJAzrael71 Icon : (14 May 2015 - 06:52 PM) Looks like Mo is going to get at least 40M guaranteed on his new deal. Mac reiterated that the team has allocated the funds for him.
santana Icon : (14 May 2015 - 07:49 PM) Morataaaaaaaaa the bastard child sent away has come back!
azjetfan Icon : (15 May 2015 - 08:33 PM) Hellooooooo
azjetfan Icon : (15 May 2015 - 08:34 PM) As the number one pick I declare this day Azjetfan day
azjetfan Icon : (15 May 2015 - 09:10 PM) Nix that. Tomorrow
MikeGangGree... Icon : (16 May 2015 - 10:41 PM) So Santana your not ready to call it a career yet i see
santana Icon : (16 May 2015 - 10:43 PM) Santana could be on the bears
santana Icon : (16 May 2015 - 10:45 PM) Or better yet the patriots :D
santana Icon : (16 May 2015 - 10:45 PM) JIMMY G-SPOT
azjetfan Icon : (16 May 2015 - 11:05 PM) Santana could be the new ball boy for the Pats.
azjetfan Icon : (16 May 2015 - 11:05 PM) Since they fired the guys who are completely innocent
azjetfan Icon : (16 May 2015 - 11:06 PM) Santana can you deflate a bag of balls in under 90 seconds?
azjetfan Icon : (16 May 2015 - 11:11 PM) Colin Kaepernick is rumored to be back on the block. I wonder if his price has dropped.
santana Icon : (17 May 2015 - 03:45 PM) Eagles should get him
ganggreen2003 Icon : (19 May 2015 - 06:17 PM) What is the status in the contract with Mo?
azjetfan Icon : (19 May 2015 - 08:17 PM) He is under contract for this year and we have the option to franchise him next.
Mr_Jet Icon : (19 May 2015 - 10:32 PM) THE KNICKS!!!
Mr_Jet Icon : (19 May 2015 - 10:33 PM) at #4
HarlemHxC814 Icon : (20 May 2015 - 09:20 AM) BAN MR_JET
Mr_Jet Icon : (20 May 2015 - 11:58 AM) LOL. It's not where you pick, it's who you pick. Knicks fans should remember Russell Westbrook and Chris Paul were both #4 picks also.
RetireChrebet Icon : (20 May 2015 - 02:32 PM) Chan Gailey says Geno is the starter heading into the season. I believe Fitzpatrick is hurt and probably won't even make the roster due to injury otherwise Fitzpatrick should have got a fair shake.
Jetsfan115 Icon : (20 May 2015 - 03:08 PM) egno did look really good in that last game.
Jetsfan115 Icon : (20 May 2015 - 03:08 PM) he just makes too many dumb mistakes
Jetsfan0099 Icon : (20 May 2015 - 04:23 PM) No excuses for Geno, we have a very good team and its up to the QB to not screw it up
Jetsfan115 Icon : (20 May 2015 - 04:43 PM) lol go back to the color coded sanchez system rex had
azjetfan Icon : (20 May 2015 - 06:48 PM) RACIST!
MikeGangGree... Icon : (21 May 2015 - 11:50 AM) Sign Wilkerson damnit!!
azjetfan Icon : (21 May 2015 - 02:01 PM) They will. He isn't in any rush to get into a voluntary mini camp
azjetfan Icon : (21 May 2015 - 02:01 PM) They aren't pushing it either
Resize Shouts Area

Page 1 of 1
  • You cannot start a new topic
  • You cannot reply to this topic

The Bush Tax-Cut Failure Voodoo economics

#1 User is offline   Mr_Jet Icon

  • Assistant Head Coach
  • Icon
  • Group: Members
  • Posts: 4,314
  • Joined: 31-March 05
  • Gender:Male
  • Location:Earth

  • NFL Team:

Posted 22 May 2013 - 02:36 AM

Quote

The Bush Tax-Cut Failure
May 21, 2013
by Bruce Bartlett

This post originally appeared on The New York Times Economix blog.

Posted Image
President Bush touts his tax cut plan to a crowd at Lafayette Regional Airport March 9, 2001, in Lafayette, La. (AP Photo/Kenneth Lambert)

Ten years ago this month, Congress enacted the third major tax cut of the George W. Bush administration. Its centerpiece was a huge cut in the tax rate on dividends. Historically, they had been taxed as ordinary income, but the Bush plan, enacted by a Republican Congress, cut that rate to 15 percent. The tax rate on ordinary income went as high as 35 percent.

This initiative originated with the economist R. Glenn Hubbard, who had been chairman of the Council of Economic Advisers when the proposal was sent to Congress. Mr. Hubbard was a strong believer that the double taxation of corporate profits – first at the corporate level and again when paid out as dividends – was a major economic problem.

During the George H. W. Bush administration, Mr. Hubbard had been deputy assistant secretary of the Treasury for tax policy and wrote a Treasury report advocating full integration of the corporate and individual income taxes.

Mr. Hubbard had also spearheaded enactment of big tax cuts in 2001 and 2002 that he said would jump-start the American economy. In an op-ed article in The Washington Post on Nov. 16, 2001, he predicted that the soon-to-be-enacted 2002 tax cut, which President Bush signed on March 9, 2002, would “quickly deliver a boost to move the economy back toward its long-run growth path.”

Mr. Hubbard predicted that it would create 300,000 additional jobs in 2002 and add half a percentage point to the real gross domestic product growth rate.

There is no evidence that the tax cut had any such effect. The unemployment rate remained above 5.7 percent all year, rising to 5.9 percent in November and 6 percent in December. The real GDP growth rate fell each quarter of 2002, and by the fourth quarter growth was at a standstill. Hence the need for yet another big tax cut.

The idea of the 2003 legislation was to raise dividend payouts, thereby bolstering personal income, and raise the prices of common stock, which would improve household balance sheets. As President Bush explained in his signing statement, “This will encourage more companies to pay dividends, which in itself will not only be good for investors but will be a corporate reform measure.” He also said the dividend tax cut would “increase the wealth effect around America and help our markets.”

The Treasury Department issued a fact sheet on July 30 asserting that the decline in dividends had been a cause of the weak stock market and noting that dividend payouts had risen since enactment of the tax cut on May 28.

Subsequent research, however, found that the increase in dividends was a short-term phenomenon and mainly at companies where stock options were a major form of executive compensation. A 2005 Federal Reserve Board study found that the United States stock market did not outperform European stock markets after the dividend cut. Nor did stocks qualifying for lower dividend taxes outperform those, such as real estate investment trusts, that did not qualify for lower dividend taxes. Non-dividend paying stocks slightly outperformed dividend-paying stocks, and many corporations that did pay higher dividends scaled back stock repurchases by a similar amount.

Share repurchases were a common way that corporations returned profits to shareholders. They raised stock prices, which were untaxed as long as shareholders held the stock and were taxed at low capital gains tax rates when sold.

A 2006 Federal Reserve study found that a third of corporations cut share repurchases by the same amount they increased dividend payouts. Hence only the form of shareholder compensation changed, not the amount. A 2010 Federal Reserve study found little change in total dividend payouts after the 2003 rate cut as a percentage of corporate earnings. It concluded that the tax cut had little, if any, effect.

A 2008 study published in the National Tax Journal surveyed investment professionals to see their reaction to the dividend tax cut. It found that the tax cut was less significant than other factors, such as corporate cash flow and cash holdings that were unaffected by the tax change.

A 2011 study by the Treasury Department examined household portfolios. It found no evidence that households shifted their investments from those whose return was taxed as ordinary income into dividend-paying stocks whose income was taxed less.

Finally, a January 2013 study by Danny Yagan of the University of California, Berkeley, examined the impact of the 2003 tax cut on corporate investment. He found zero change.

It is hard to find even a reputable conservative economist willing to say anything good these days about President Bush’s tax and economic policies. In 2009, the Harvard economist Dale Jorgenson said he saw no redeeming features in them.

In 2011, the economist Alan Viard of the conservative American Enterprise Institute told Bloomberg News, “The effects of the Bush tax cuts on growth were ambiguous at best.” He added, “They were not much of a poster child for pro-growth tax policy.”

Even Mr. Hubbard now seems unwilling to defend the tax cuts he shepherded into law. Earlier this year, he was asked by The New York Times what he thought about the repeal of many of the Bush-era tax cuts on Jan. 1. He said many of those tax cuts were no longer relevant to our tax and economic problems.

Mr. Hubbard even suggested that higher revenues, long a Republican no-no, were not a bad thing. “We need a tax system that can promote economic growth and raise the revenue the American people want to devote to government,” he said.



-Bruce Bartlett held senior policy roles in the Reagan and George H. W. Bush administrations and served on the staffs of Representatives Jack Kemp and Ron Paul. He is the author of The Benefit and the Burden: Tax Reform – Why We Need It and What It Will Take. He’s been a guest of Bill’s twice on Moyers & Company.



Papa Bush had it right from the very beginning...

View PostFlyHiJets, on 01 June 2013 - 08:35 PM, said:

You're the scumbag that thinks everyone should kiss the as$es of a bunch of criminals but I'm a dumbass. Yeah okay douchebag. Go give some illegal wetback or Revis another blowjob. But then again.....don't you live in an entirely different country but yet think you can tell us how to live? Go fvck yourself little boy. You're likely still living with mommy & daddy. Pu$$y.


View Postazjetfan, on 02 July 2014 - 03:36 PM, said:

There are a few things I have realized about Mr. Jet over a few topics.

1) He is a racist. By constantly using race as a battling tool.
2) He is an extreme Liberal. If you are on either extreme you are probabaly more wrong than right.
3) He is one of those people who will never admit fault, error or defeat.
4)His life sucks and he takes it out on people who don't share in his views.
0

#2 User is offline   azjetfan Icon

  • D Coordinator
  • Icon
  • Group: Members
  • Posts: 3,145
  • Joined: 30-March 05
  • Gender:Male
  • Location:Cheese Land Baby
  • Interests:Football, golf, banking and home improvements

  • NFL Team:

Posted 22 May 2013 - 05:15 PM

You have to have a reasonable budget for a tax code to work. Something our government has yet to do effectively no matter the party for one reason or another. Some people want more taxes and the government to be more evolved with their lives and some do not. Time to put all this Liberal vs Conservative or Democrate vs Republican crap aside. It's fun to talk about but eventually something will need to be done.
Posted Image
0

Page 1 of 1
  • You cannot start a new topic
  • You cannot reply to this topic

1 User(s) are reading this topic
0 members, 1 guests, 0 anonymous users