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Tax cuts boosted deficit
I disagree with David Wordinger’s letter on Feb 23. Wordinger said that Gary Crooks was wrong for blaming part of the federal deficit on the Bush tax cuts.
Wordinger compares taxes in 2004 and 2008. President Bush cut taxes in 2001 and 2003. In 2000, total federal receipts were 20.35 percent of GDP; in 2002 (after the Bush tax cuts), receipts were 16 percent and in 2004, 15.84 percent.
Because of the Bush tax cuts and the recession, total federal receipts were only 14.76 percent of GDP in 2009. If receipts were 20.35 percent as they were in the year 2000, federal receipts in 2009 would have been $800 billion larger. Therefore, the Bush tax cuts and the recession explain more than half the budget deficit.
In addition, Mr. Wordinger says high taxes reduce investment. However, investment as a percent of GDP was higher under President Clinton than under Reagan-Bush-Bush. I am not saying high taxes will increase investment. It depends on many factors other than taxes alone.
Lewis Marler
Spokane