Remember the shrill warnings during the early Bush years from the likes of Paul Krugman and others on the disaster looming with Bush’s “tax cuts for the rich?” In spite of the obvious success of the Bush Tax Policy in the midst of Katrina, the expensive wars in the Middle East, 911, and the aftermath of the Enron and Worldcom meltdowns, they never admitted they were wrong and still shriek about the need to undo the Bush tax cut.

Fred (We hope he will run..) Thompson gets it and explains it as simply as it can be stated in this OpinionJournal article:

The results of the experiment that began when Congress passed a series of tax-rate cuts in 2001 and 2003 are in. Supporters of those cuts said they would stimulate the economy.

Opponents predicted ever-increasing budget deficits and national bankruptcy unless tax rates were increased, especially on the wealthy.

In fact, Treasury statistics show that tax revenues have soared and the budget deficit has been shrinking faster than even the optimists projected. Since the first tax cuts were passed, when I was in the Senate, the budget deficit has been cut in half.

Remarkably, this has happened despite the financial trauma of 9/11 and the cost of the War on Terror. The deficit, compared to the entire economy, is well below the average for the last 35 years and, at this rate, the budget will be in surplus by 2010.

Perhaps the most fascinating thing about this success story is where the increased revenues are coming from. Critics claimed that across-the-board tax cuts were some sort of gift to the rich but, on the contrary, the wealthy are paying a greater percentage of the national bill than ever before.

for the rest of Fred Thompson’s article, “Case Closed” :
http://www.opinionjournal.com/editorial/feature.html?id=110009940

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