Before the Bush Recession – Supply Side Tax Cuts Failed to Deliver Jobs and Income Growth between 2001 and 2007

Source: Joshua Picker, Center for American Progress, February 2009

This paper will examine the jobs, income and poverty legacy wrought by supply-side ideology over the course of the Bush presidency. This review is important not least because conservatives continue to pitch supply-side remedies as valid alternatives to the Obama recovery package amid a worsening recession. And beyond the economic recovery, the upcoming fiscal 2010 and 2011 federal budget debates will prominently feature questions about whether to extend some or all of the Bush tax cuts. The evidence in this paper demonstrates that conservative rhetoric about the job creation potential of supply-side tax cuts does not match up to the anemic Bush-era record.

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