| Tax cuts lose more money than they generate, studies conclude

It's Voodoo Economics on Steroids.

Some one notify John McCain that Bushite economists are on steroids, since he apparently think that steroidsare the most impoatant national issue going.

KR Washington Bureau 05/17/2006 Tax cuts lose more money than they generate, studies conclude:

"WASHINGTON - When President Bush signed legislation Wednesday to extend lower tax rates for capital gains and dividend income through 2010, he suggested that his tax cuts are behind a surge of new revenue into the Treasury, and implied that it's enough to offset the revenue lost by these reductions.

At a ceremony on the White House lawn, Bush said his tax cuts had helped the economy grow, 'which means more tax revenue for the federal Treasury.'

That's just not true. A host of studies, some of them written by economists who served in the Bush administration, have concluded that tax reductions mean less money for the Treasury.

The cuts Bush extended Wednesday will cost the Treasury an estimated $70 billion over five years. They may help spur economic growth, but they still lose more revenue than they generate. And unless they're matched by lower federal spending, they worsen federal budget deficits. "