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

Jump to content

Toggle shoutbox NYJETSFAN BANTER

Jets 0-2 vs bills this year. Does Rex Ryan survive the year?
ganggreen2003 Icon : (25 November 2014 - 11:34 PM) Man the JETS are a 3 ring circus or American Horror Story: FREAK SHOW!!!!
Jetsfan0099 Icon : (Yesterday, 08:45 AM) Jets starting Geno again.
Jetsfan0099 Icon : (Yesterday, 08:45 AM) FIRE IDZIK,
Jetsfan0099 Icon : (Yesterday, 08:45 AM) I really hope the JEts completely clean house this offseason and get rid of everyone, it's time.
Jetsfan0099 Icon : (Yesterday, 08:54 AM) We need to keep getting embarrassed every week to ensure that. That is why I don't give a shit about getting destroyed, it makes the team look like more of a joke and forces Woody to make real changes
Jetsfan0099 Icon : (Yesterday, 08:55 AM) Like how do you get blown out by a team that didn't practice while you had 2 weeks to prepare?
Jetsfan0099 Icon : (Yesterday, 08:55 AM) That kind of stuff may force Woody to make the big changes and fire everyone
Jetsfan0099 Icon : (Yesterday, 08:55 AM) John Idzik has handled the QB situation terribly. 2 times he pretty much handed the job to his draft pick
Jetsfan0099 Icon : (Yesterday, 08:56 AM) Besides Sheldon Richardson, his drafts have been awful.
Jetsfan0099 Icon : (Yesterday, 08:57 AM) Maybe Woody will clean house and go all out for Jim Harbaugh, that probably won't happen though but it would be a franchise changer.
HarlemHxC814 Icon : (Yesterday, 10:07 AM) Harbaugh would be amazing...but because it makes sense it won't be done
HarlemHxC814 Icon : (Yesterday, 10:51 AM) According to Manish Mehta of the New York Daily News, the Jets blocked coach Rex Ryan from talking to Mehta about a bye-week visit to his ailing father, legendary NFL defensive guru Buddy Ryan. Buddy, who rose to prominence as defensive coordinator of the ’85 Bears and then coached the Eagles and Cardinals, is battling cancer.
HarlemHxC814 Icon : (Yesterday, 10:52 AM) Mehta interprets the muzzling of Rex Ryan as proof positive that, once the season ends, Ryan will no longer be the team’s head coach. Apparently, the team fears that Rex would become more sympathetic in the eyes of the fan base if he’s dumped by the team at a time when his father is fighting a serious illness.
santana Icon : (Yesterday, 11:05 AM) Mehta is an idiot
santana Icon : (Yesterday, 11:25 AM) If colt McCoy lights it up do the jets make a move?
HarlemHxC814 Icon : (Yesterday, 11:27 AM) I don't even care what they do for a while
HarlemHxC814 Icon : (Yesterday, 11:28 AM) The team is a catastrophe
santana Icon : (Yesterday, 11:29 AM) I didn't see the game
santana Icon : (Yesterday, 11:29 AM) I remember the first bills game though I'm guessing it was like that with more sleeping in the end zone
HarlemHxC814 Icon : (Yesterday, 11:32 AM) I'm with 0099...I hope they keep getting destroyed
Chaos Icon : (Yesterday, 11:33 AM) it's a very Jets-esque move to sign McCoy if he does well
HarlemHxC814 Icon : (Yesterday, 11:53 AM) I think they sign RGIII, Cutler, or Bradford
santana Icon : (Yesterday, 12:10 PM) why not all three
HarlemHxC814 Icon : (Yesterday, 12:11 PM) Knowing this team, I wouldn't put that past them
HarlemHxC814 Icon : (Yesterday, 02:07 PM) RAUL FOR QB
santana Icon : (Yesterday, 02:10 PM) the only real choice
santana Icon : (Yesterday, 02:10 PM) almost uefa time
HarlemHxC814 Icon : (Yesterday, 02:11 PM) RAUL>SMITHSIAH, JUST ACCEPT IT
HarlemHxC814 Icon : (Yesterday, 02:22 PM) FIRE IZDICK
santana Icon : (Yesterday, 04:07 PM) Rocking the atletico kit today 4-0 THE RAUL INFLUENCE
HarlemHxC814 Icon : (Yesterday, 04:15 PM) Haha you should make that into some kind of logo and put it in your sig
HarlemHxC814 Icon : (Yesterday, 04:15 PM) Sig***
HarlemHxC814 Icon : (Yesterday, 04:19 PM) TEH RAUL INFLUENCE
santana Icon : (Yesterday, 04:29 PM) LUDOGRETS
santana Icon : (Yesterday, 04:34 PM) LUDOGORETS
MikeGangGree... Icon : (Yesterday, 08:29 PM) TEH IZDIK
MikeGangGree... Icon : (Yesterday, 08:29 PM) SUCK
MikeGangGree... Icon : (Yesterday, 08:29 PM) FOR
MikeGangGree... Icon : (Yesterday, 08:29 PM) THE
MikeGangGree... Icon : (Yesterday, 08:29 PM) DUCK
Mr_Jet Icon : (Yesterday, 09:32 PM) One of these days one of you are going to type it too fast and say "Suck the Duck".
HarlemHxC814 Icon : (Yesterday, 09:41 PM) Hahaha
Jetsfan0099 Icon : (Yesterday, 10:45 PM) FIRE IDZIK
HarlemHxC814 Icon : (Today, 02:04 AM) TEH POINT
Chaos Icon : (Today, 11:14 AM) happy thanksgiving everyone!
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: 4,276
  • 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...

New York Jets
Super Bowl III Champions


Los Angeles Lakers
16-times NBA World Champions

1949, 1950, 1952, 1953, 1954, 1972, 1980, 1982, 1985, 1987, 1988, 2000, 2001, 2002, 2009, 2010

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: 2,984
  • 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