Do Tax Cuts Pay for Themselves?

No they don’t. Not all the spin in the world can conjure something out of the snake oil that is supply side economics. I know that the facts don’t get in the way of George’s rhetoric, when have they ever? But this stupid notion that tax cuts “pay for themselves” is, well, a flat out lie. Our friends at the Center on Budget and Policy Priorities debunk the idea [again] in this analysis: Data Show No “Free Lunch”

The headlines of their analysis are: that revenues have been $316 billion lower than the adminstration projected; that the recovery has been weak even though the tax cuts were supposed to stimulate it; and that revenues have fallen, in real terms, during this economy. That just about says it all. The stimulus failed; revenues have fallen [the only time that’s happened since the Depression]; and even the administration’s own projections acknowledge that tax cuts don’t pay for themselves.

So why does Bush keep blabbing on about this? Because he’s a liar? Because his die hard base can’t stomach the fact that supply side economics is a sham? Because he never admits a mistake? Because he doesn’t give a damn about the economy?

Yes.