Bush Tax Cut Essay, Research Paper
After a great 8 years under President Clinton s fiscal discipline in the government, we have had a great economic surplus that included other huge surpluses as well. President Bush wants a huge tax cut that obviously can increase interest rates and recreate the loss of consumer and business confidence that had the same deficits during the late 80 s and early 90 s. While President Bush s proposed tax cut of roughly $2 trillion seems extremely favorable, the reality is that it will hurt the future of our country greatly.
Robert E. Rubin, former Secretary of the Treasury, knows a lot about our money and can easily see that President Bush s huge tax cut can create a huge error in economic policy. When looking over the last 20 years and how we have done with fiscal discipline and without fiscal discipline, we can find many clues that our nation has benefited from fiscal discipline. First off, we have gained greatly when our nation has been committed to fiscal discipline and lose greatly when it is not. Another reason is that we have a huge duty to not pass on the burdens of a huge national debt and recession to the next generation, when we can act and stop problems from happening today.
In 1993 when President Clinton restored fiscal discipline, there was a huge economic transformation. This transformation included the creation of many new jobs, rising incomes, low inflation, lower percentage of unemployment, and much of today s large current surpluses. Fiscal discipline also contributed greatly to the restoration of confidence by consumers and business that resulted in increase demand, increased investment in new technologies, increased productivity, and sustained growth in gross domestic product. These extremely favorable conditions all occurred because of fiscal discipline and by brining in a huge tax cut of $2 trillion we are seriously threatening the fiscal soundness currently in the federal government.
The imperative for maintaining our fiscal discipline is increased by the importance of putting the federal government in the position to meet the Social Security and Medicare requirements of future generations. Under President Bush s $2 trillion tax cut this will not be achieved and would cause a significant step back to the deficits that quadrupled the national debt from 1980 to 1992.
I am strongly against President Bush s $2 trillion tax cut. It angers me that the majority of American people can not see how the tax cut would hurt their future, my future, and the generations to come. It can easily be seen that under a remarkable eight years under President Clinton that we have had a huge economic surplus that has created more jobs, higher incomes, lower inflation, and extremely less unemployment.
If there were to be a tax cut that I would prefer to see Bush put out it would be much like the one proposed by Mr. Rubin. I think there should be a more moderate tax cut that would favor the middle and lower income classes who deserve a tax cut. Areas like health care and education are important places to start as well.
I feel that President Bush s tax plan will do nothing but put us in more debt. It is extremely reminiscent of Reagan s horrible tax cut that quadrupled our debt and built the huge deficit that we had in the 80 s. By easily looking over what has happened in the past 20 years with and without fiscal discipline, it can easily be seen that the years under Clinton and his fiscal discipline policies have contributed greatly to our economic success as the World s leading power. It has created great job opportunities, lower inflation, and much lower unemployment rates. It is also important to look at the future of my generation who would be harmed greatly with Bush s large tax cut. Instead of Mom s and Dad s around the U.S. jumping up and down with happiness as they think about the great tax cut they are going to receive, they should think about their children s future instead.