Works in Theory/Practice is Another Story

The theory is that tax cuts pay for themselves by generating additional economic activity. That additional economic activity will result in increased tax revenue. Unfortunately, a theory is just a theory. There are no guaranteed results and the true test of theory, in many cases, is practice. So, the question is whether or not the Bush tax cuts in place since 2001 and renewed in 2009 did result in increased tax revenues? Did these tax cuts result in increased economic growth? If you are a CEO with a large company or President of a major bank you experienced personal economic growth. However that was not the case if you were part of the American middle class. The average middle class wage earner experienced an actual decline in economic growth since 2001. By the way, that decline only applied to the middle class wage earner who was still earning a wage. Many who were middle class wage earners in 2001 are no longer employed and have been economically devastated. If you owned a business located near one of the 54,000 manufacturing concerns that closed in the years following 2001, you probably also failed to experience economic growth. However, if you are a CEO at one of the companies that moved operations off shore since 2001 you probably are enjoying the results of your activities. According to census figures, 2% of tax filers would agree that tax cuts pay for themselves as they did experience an unprecedented economic growth since 2001. On the other hand, again based upon census data, 98% of tax filers would disagree with the premise and reject any claim of validity for the theory in question. Since 2001 the numbers of unemployed and under-employed have reached historic highs. The increase in numbers of households at or below the poverty level is also setting records. Childhood poverty has experienced massive increases. Foreclosures continue to occur in record numbers. How has this theory worked for you?