Hey Tea Party, In 2003 Economists Predicted Our Current Deficit!

Last updated on August 11th, 2012 at 07:22 pm

Remember back when the tea party didn’t care about deficits and for that matter, neither did the Republicans. Well back in 2003, the Center for Budget and Policy Priorities was concerned and they predicted perfectly that due to the Bush tax cuts, we would have a one trillion dollar deficit.

They said the Bush tax cuts back in 2003 carried an official cost of $350 billion dollars through 2012 but only achieves that number through budgetary swill. The CBPP said if the provisions in the Bush tax cuts are extended, the cost of the total tax cut law through 2012 will be $807 to $1 trillion dollars.

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The current annual deficit right now is at or around $1 trillion dollars. This includes massive reduction in revenue due to the 2008 Republican recession. So if their numbers are right, even with the recession, we would have no deficit or a small deficit that would evaporate after more people start to find work.

The excuse for the tax cuts, as is the usual case, is job creation. However, back in the same year of 2003, a couple of Nobel laureates, Franco Modigliani and Robert Solow said this:

“CONGRESS HAS just approved tax measures that to a large extent enact the president’s request to exempt corporate dividends from the personal income tax.

President Bush and supporters justify such a drastic change in our tax system on two grounds: ending the ”sin” of double taxation of dividends and shoring up a weak economy.

On closer examination, however, these turn out to be just excuses. The real intent is a continuation of the old struggle to enrich the wealthy at the expense of ordinary people, including future generations.”

So as you will likely hear the Republicans complain about the deficit and the Tea Party stomp their feet and whine, remember, it was predicted in 2003 when Republicans were in complete control of everything.

Now, when it is a perfect time to use that “extra” money to inject into the economy, they scream deficit! deficit! deficit! They continuously prey on the ignorant voter, all the while knowing what they are doing.