Lest we forget, the following is a brief history of Bush economic policy as gleaned from Paul Krugman's "Great Unraveling"
Assumed a $4.6 trillion surplus (most optimistic)
Stated that "nearly a trillion" to go for new programs. $474.6 billion in published campaign material. (verbal exaggeration)
Stated a quarter or $1.3 trillion to tax cuts. (4.6 / 4 = 1.15, 4.6 / 1.3 = 3.5) So actually is more than a third to tax cuts.
Now assuming a surplus of $5.6 trillion (where did that extra trillion come from?)
Pre Tax Cut
Payroll tax , flat rate of 15.3% on all income up to $70,000. Main tax for 4 out of 5 families.
Income tax, < 10 % for most families, but 30% for $1,000,000 or more.
Inheritance tax, only applies to estates of $675,000 or more (1,350,000 for couples). Only 2% of estates pay any tax
Post Tax Cut
Payroll tax, untouched.
Income tax, rate reduced across the board but greater proportional rate reduction on the high end.
Inheritance tax, under attack but not gone yet.
Clinton years disprove the premise that taxes are a drag on economy. Lower brackets get income tax reduction but they are still paying a 15.3% payroll tax that millionaires see as a 1% tax. This is clearly a tax break for rich folks, the poor folks get crumbs.
Congress Joint Tax Committee runs the numbers on the Bush tax cut plan. It is now a $2.5 trillion tax cut instead of $1.3 trillion.
Since these cuts are phased in, Bush also asks for a 100 billion in immediate cuts. Pushes total tax cut up towards $2.6 trillion.
Bush states that 17.4 million small business owners and entrepreneurs will benefit by dropping top rate from 39.6 to 33 percent. But only 1 million people actually pay at the top rate, few of them small business owners. Only 1 percent of small business owners will benefit. (Such candor from our leader)
Gas prices are up. Bush says the 100 billion cut is the answer. Poorest people who are most affected will see none of it.
Tax legislation is signed. It is full of gimmicks to keep it looking affordable. Even though biggest cuts are put late in the plan and the repeal of inheritance tax put off to 2010, they still needed to sunset the whole thing in 2011 to bring in.
Enron-driven electricity prices are up. Bush says no short term answers but drilling for oil in ANWR is the answer. Also says 100 billion cut will help people buy electricity.
Congressional Budget Office reports that the surplus is gone and a deficit is looming.
Deficits clearly projected in the future. That's without considering a recession or military spending.
Bush proposes an additional $600 billion in cuts. Military costs are increasing but not in proportion to the actual threat from Al-Qaida.
In the 2001 budget, a $262 billion surplus in 2004 predicted.
In the 2002 budget, a $14 billion deficit in 2004 predicted.
In the 2003 budget, a $307 billion deficit in 2004 predicted.
Similar deficits predicted for years following 2004.
Bush is asking for a $674 billion tax cut immediately and a $1.5 trillion cut over the next decade.
It's so bad that the OMB has stopped issuing 10-year projections and only offers 5-year ones.