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And to the Corporations for Which They Stand
One Nation Where Money is God
Made Divisible, No Liberty or Justice at All...

Sunday, June 5, 2011

Tax Cuts for the Rich: A History of Failure

Republican President Dwight D. Eisenhower took office in 1953. The top tax rate stayed frozen at 91% his entire presidency and remained so throughout JFK's.

A Republican president taxed the rich 91%. Amazing huh? Things must have been horrible in the 50's, right?...

President Eisenhower

  • Presided over one of the most prosperous and thriving economies in American history. 
  • Balanced the budget and created a moderate surplus (The last Republican President to do so) 
  • Kept inflation near zero and unemployment low
  • Created nearly 4 million jobs (Factor in that the population in the 50's was less than half of what it is today) 
  • Witnessed steady job growth  in all sectors
  • Expanded Social Security
  • Created the International Highway System & NASA
  • Increased Minimum Wage 
The only downside was a world-wide recession in 1957 caused by foreign trade deficits that lasted 8 months. It raised unemployment to 6.2% but we quickly rebounded. 

Who knows how the economy was so good under a rich-taxing, government agency creating socialist like Eisenhower... He must have just lucked out!

We'll skip ahead a few decades and see how a real conservative does it...

Republican President Ronald Reagan took office in 1981. The top tax rate was 69.13%. In 8 years time, President Reagan cut the top tax rate in half to 28%. 

With the Reagan years being an 8 year Christmas for the rich, things must have been great in the 80's right?...

President Reagan

  • Tripled the National Debt in 8 years, from $900 billion to a Record $3 trillion 
  • Saw the unemployment rate reach 10.8 (Highest since the great depression). The unemployment rate did fall over the Reagan years, but not until he raised taxes... 11 times. Which further justifies my overall point.
  • Enabled over 2 million American manufacturing jobs to be outsourced to other countries.
  • Presided over a recession that lasted 1 year and 4 months, the longest since the great depression. 
  • Enabled worker's wages to remain frozen for 8 years
  • Oversaw corporations layoff tens of thousands of workers while making record profits
  • Saw home ownership decrease.
  • Watched the poverty rate steadily increase.
  • Funded future terrorists.
So the rich had their taxes cut in half over the Reagan years and it wasn't Heaven on Earth? Sure, the rich made a lot of money, but millions of others saw their jobs sent overseas, no wage increases for nearly a decade, layoffs in times of record profit, their unions busted, and saw their money being used instead to fund terrorists we would later have to spend more money stopping because we funded them in the first place... Thanks Gipper!

After Reagan, America didn't quite have enough and elected Reagan's vice-president George H.W. Bush to take sloppy seconds on what was left of America. But after that... the people had enough.

Then came a smooth-talking southern gentleman from Arkansas...

Democratic President Bill Clinton took office in 1993. The top tax rate was 31%. President Clinton Raised the top tax rate to 39.60% and it remained his entire presidency.

Oh no! You know what happens when these democrats get into office. They raise taxes on people so rich it hardly effects them and hell rises on Earth in the form of the U.S. Government that conservatives only trust when conservatives are in charge.

So this is going to be painful, right?...

President Clinton

  • Balanced the budget and created the largest surplus in American history.
  • Created 22.5 million jobs, the most ever created by a single administration. 92% of them private sector jobs
  • Saw the economy grow for 116 consecutive months, the longest in history. 
  • Witnessed unemployment drop to the lowest level in 30 years.
  • Oversaw Inflation drop to lowest level since the Kennedy administration.
  • Saw the poverty rate decline to the lowest level in 30 years. 
  • Enabled home ownership to reach it's highest level ever recorded. 
Wait a minute.... That doesn't sound bad at all! Call me crazy, but is there a chance that maybe making the rich pay their fair share in taxes is good for the economy and cutting them is bad?

No, cant be! It's just the facts getting to me, that's all. 

Im sure a republican president inheriting Clinton's economy would be able to add to that surplus, cut spending, and create even more jobs than a democrat...

Republican President George W. Bush was picked by the Supreme Court and took office in 2001. The top tax rate was 39.60%. Bush lowered the top tax rate to 38.60% for 2 years and then to 35% where it remains today. 

After 8 years of democratic policy creating a strong economy, what could possibly go wrong with the far superior, adult policies of the republicans? Good times were ahead, right?...

President Bush

  • Created a record $1.3 trillion deficit in 8 years after inheriting a $236 billion surplus. 
  • Has the worst record of job creation ever.
  • Saw over 4.5  million job losses in his presidency.
  • Watched as Unemployment rose to highest levels in 15 years.
  • Enabled the poverty rate to increase from 11.25% to 19% in 8 years.
  • Saw inflation rise at the fastest rate in 17 years 
  • Oversaw the worst recession  since the great depression on his watch. 
  • Gave a $700 billion taxpayer bailout to the banks that caused the market to collapse. 
Ouch... that wasn't pretty. Of course republicans forgot all about this time, but for those of us who still remember, it still stings. Oh, and where the f$#k was the teaparty?!? 

I wont evaluate President Obama because his presidency is not complete and wouldn't be fair considering all four presidents mentioned were measured on an 8 year presidency. 

With that being said, President Obama did pass a budget keeping the Bush tax cuts for the rich because republicans promised they would filibuster and block any attempts to continue unemployment insurance for workers that lost their jobs by no fault of their own if billionaires got slapped with a whopping 4.6% tax hike in a time of corporate record profits. 

I don't have to explain to you the condition of the economy right now, you already know. 

Job creators are making more profits than they ever have in the history of the universe yet not creating jobs. 

The deficit is not going down because we keep adding to it to pay for these tax cuts and squeezing the working-class to make up the difference. 

The rich are getting richer and the poor are getting poorer. 

Just like the time before that and the time before that. 

How many times does trickle-down economics have to fail before we realize that it is a failed policy?


  1. Liberals keep repeating the big lie until it becomes true.

    The rich are getting richer but the poor are also getting richer.

  2. Obama and the Dems would kill for unemployment to be 6.2% ... it would be signs that the recovery was a huge success!

    But now. We got tax cuts for millionaires instead. Live and learn, Dems.

  3. The rich are getting richer but the poor are also getting richer.

    Actually, no:


  4. Nice post...it was just forwarded to me....keep posting, tweeting, and share it on facebook.

  5. I found this post to be exceptionally well written. I wish I had half of the rhetorical skills you have.

  6. "Liberals keep repeating the big lie until it becomes true.

    The rich are getting richer but the poor are also getting richer."

    Lol, you never stopped eating the paste after kindergarten did you?

  7. Thanks for laying out all of these figures so clearly. It's really sad how the poor and working classes of this country have been fleeced by greedy puppetmasters who play on their deepest hopes and dreams. Workers are too busy working overtime to actually inform themselves. Read www.rebuildthedream.com and start electing some progressives to Congress! The President can't do everything himself. Whoever wrote this post should consider running for office!

  8. "President Obama did pass a budget keeping the Bush tax cuts for the rich because republicans promised they would filibuster and block any attempts to continue unemployment insurance for workers that lost their jobs" is truly Obama-apologetics, which is a weak logical fallacious excuse. Obama sheep believe and accept it, but we Progressives do not accept these weak excuses.

  9. Obama let the Bush tax cuts expire my friend.You should check your facts at a legitimate website

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