How many times have we heard the libtards claim Bush squandered away the ‘surplus’ he inherited from Clinton by giving it away to the rich in the forms of tax cuts, Medicare and two wars? What if I told you there was never really a surplus but only Congressional Budget Office projections? Well, that’s the simple truth…no matter what Barack Obama claims says WSJ’s Brian Riedl:
President Obama and congressional Democrats are blaming their trillion-dollar budget deficits on the Bush tax cuts of 2001 and 2003. Letting these tax cuts expire is their answer. Yet the data flatly contradict this “tax cuts caused the deficits” narrative. Consider the three most persistent myths:
• The Bush tax cuts wiped out last decade’s budget surpluses. Sen. John Kerry (D., Mass.), for example, has long blamed the tax cuts for having “taken a $5.6 trillion surplus and turned it into deficits as far as the eye can see.” That $5.6 trillion surplus never existed. It was a projection by the Congressional Budget Office (CBO) in January 2001 to cover the next decade. It assumed that late-1990s economic growth and the stock-market bubble (which had already peaked) would continue forever and generate record-high tax revenues. It assumed no recessions, no terrorist attacks, no wars, no natural disasters, and that all discretionary spending would fall to 1930s levels.
The projected $5.6 trillion surplus between 2002 and 2011 will more likely be a $6.1 trillion deficit through September 2011. So what was the cause of this dizzying, $11.7 trillion swing? I’ve analyzed CBO’s 28 subsequent budget baseline updates since January 2001. These updates reveal that the much-maligned Bush tax cuts, at $1.7 trillion, caused just 14% of the swing from projected surpluses to actual deficits (and that is according to a “static” analysis, excluding any revenues recovered from faster economic growth induced by the cuts).
Please be sure to read Riedl’s entire article for the other myths spread by Obama and his gang of progressive Democrats. Keep this information handy for the next time you hear a liberal/progressive attempt to use the “Bush blew Clinton’s surplus” claim. Clinton’s surplus was nothing more than CBO projections for the next decade.