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

Jump to content

Toggle shoutbox NYJETSFAN BANTER

MikeGangGree... Icon : (21 July 2014 - 07:43 PM) TEH BEETS
Jetsfan0099 Icon : (22 July 2014 - 06:53 AM) training camp starts in 2 days
MikeGangGree... Icon : (22 July 2014 - 04:38 PM) Just got my tickets to the Jets/Bears game!!
MikeGangGree... Icon : (22 July 2014 - 04:39 PM) Going to the Giants and Texans game also. 2 games in 2 days. WOOOOO
Jetsfan0099 Icon : (23 July 2014 - 09:36 AM) players are reporting to camp today, tomorrow is the first practice!
Jetsfan0099 Icon : (23 July 2014 - 09:36 AM) Football is almost back!
Jetsfan0099 Icon : (23 July 2014 - 04:42 PM) FIRE IDZIK
HarlemHxC814 Icon : (23 July 2014 - 04:42 PM) You know 0099 is back in the shout box when the FIRE IDZIK drops
Jetsfan0099 Icon : (24 July 2014 - 08:46 AM) lol first practice today
Jetsfan0099 Icon : (24 July 2014 - 08:47 AM) I've been really busy lately, been working 60+ hours a week. plus there hasn't been much to talk about.
HarlemHxC814 Icon : (24 July 2014 - 08:58 AM) Yeah this has been the most dead offseason in quite some time
Jetsfan0099 Icon : (24 July 2014 - 09:59 AM) maybe people will start coming back now that camp is starting up
Jetsfan0099 Icon : (24 July 2014 - 11:46 AM) Geno had a strong first practice, went 7-10
Jetsfan115 Icon : (25 July 2014 - 02:51 PM) site's kinda been dead for years now. even during last season.
HarlemHxC814 Icon : (25 July 2014 - 03:28 PM) Yeah I know but it hasn't been this dead
Mr_Jet Icon : (26 July 2014 - 02:02 PM) When the team was winning and going to AFC Championship games the site had a lot of activity. But now after a couple of mediocre seasons, people don't want to talk.
Mr_Jet Icon : (26 July 2014 - 02:04 PM) When the team starts winning again people who have been MIA will be back saying that they never left.
518-JeTS-FaN Icon : (27 July 2014 - 07:07 AM) wats good everyone!. been awhile since i last posted anything but i always come on here to read and see whats new
ganggreen2003 Icon : (27 July 2014 - 06:33 PM) SUP BITCHES!!!!
HarlemHxC814 Icon : (27 July 2014 - 07:33 PM) Oh it's you
RetireChrebet Icon : (27 July 2014 - 08:49 PM) Harlem, great way to encourage user activity!
HarlemHxC814 Icon : (27 July 2014 - 10:23 PM) I aim to please
Jetsfan0099 Icon : (28 July 2014 - 04:37 PM) lol
ganggreen2003 Icon : (28 July 2014 - 05:36 PM) Still being a dick huh Harlem?
ganggreen2003 Icon : (28 July 2014 - 05:36 PM) Shit hasn't changed much since the 2013 JETS season
santana Icon : (28 July 2014 - 06:26 PM) yep everyone is still dicks
MikeGangGree... Icon : (28 July 2014 - 06:50 PM) .[43] Moments later, during a live post-game interview with Fox Sports' Erin Andrews, Sherman emotionally shouted, "Well, I'm the best corner in the game! When you try me with a sorry receiver like Crabtree, that's the result you gonna get
MikeGangGree... Icon : (28 July 2014 - 06:51 PM) Im the best poster on the site!! When you try me with a sorry poster like Santana, thats the result your gonna get.
MikeGangGree... Icon : (28 July 2014 - 06:52 PM) WOOOOOOOOOOO
santana Icon : (28 July 2014 - 07:48 PM) you are the best cb on the site cb of course meaning cheap bastard
santana Icon : (28 July 2014 - 07:49 PM) WOO
Chaos Icon : (29 July 2014 - 11:16 AM) any news on Amaro? havent seen anything on twitter.
ganggreen2003 Icon : (29 July 2014 - 03:56 PM) only 39 days 20 hours and 3 min to go till the JETS kick off the season on Sept 7th at 1pm against the Oakland Raiders
HarlemHxC814 Icon : (29 July 2014 - 03:59 PM) Amaro practiced today in full pads
ganggreen2003 Icon : (29 July 2014 - 08:21 PM) 42 Days 39 min till Sons Of Anarchy FINAL SEASON starts
Jetsfan0099 Icon : (29 July 2014 - 08:42 PM) Amaro has a lingering sore tendon
Jetsfan0099 Icon : (29 July 2014 - 08:43 PM) I've read that hes been up and down so far
Jetsfan0099 Icon : (29 July 2014 - 08:44 PM) Dexter McDougle has been looking really good
Jetsfan0099 Icon : (29 July 2014 - 08:44 PM) Oday Aboushi might end up starting on the OL, hes been doing good at LG
Jetsfan0099 Icon : (29 July 2014 - 08:46 PM) FIRE IDZIK
MikeGangGree... Icon : (29 July 2014 - 11:41 PM) VICK=$$$$$$
santana Icon : (Yesterday, 09:24 AM) Everyone knows that Vick = $$
HarlemHxC814 Icon : (Yesterday, 12:03 PM) I do it all
HarlemHxC814 Icon : (Yesterday, 12:03 PM) North to south east to the west
JSOTF Icon : (Today, 03:50 AM) Greetings from Germany!
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: 4,230
  • 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: 2,885
  • 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