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www.heritage.org/research/taxes/bg2001.cfm
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• The Bush tax cuts have provided a conve-
nient scapegoat for the nation’s budget
and economic challenges, but nearly all of
the conventional wisdom about the tax
cuts is wrong.
• The Bush tax cuts have not substantially
reduced current tax revenues. In fact, 2006
revenues were above the historical average
and above the 2003 pre–tax cut baseline.
• The increased child tax credit, 10 percent tax
bracket, and alternative minimum tax fix
reduced tax revenues much more than most
of the “tax cuts for the rich.”
• Economic growth rates have more than
doubled, and 5 million new jobs have been
created since the 2003 tax cuts.
• The tax cuts shifted even more of the
income tax burden toward the rich.
Talking Points
No. 2001
January 29, 2007
Ten Myths About the Bush Tax Cuts
Brian M. Riedl
The Democratic majority in the U.S. House of Rep-
resentatives must decide whether to write a budget
extending, expiring, or repealing the Bush tax cuts.
These tax cuts have provided a convenient scapegoat
for the nation’s budget and economic challenges.
Despite a 42 percent spending increase in 2001, critics
charge that the tax cuts have starved popular pro-
grams. Despite surging economic growth and 5 million
new jobs since 2003, critics also charge that the tax
cuts have not helped the economy. Finally, despite
making the income tax code more progressive, critics
charge that the tax cuts have widened inequality.
Nearly all of the conventional wisdom about the
Bush tax cuts is wrong. In reality:
• The tax cuts have not substantially reduced cur-
rent tax revenues, which were in