Bush-era tax cuts
Soon after George W. Bush won his first presidential election, Washington lobbyist, Grover Norquist, helped craft the tax cut legislation that would go down in history as “the Bush-era tax cuts.” Among other things, the legislation dropped top marginal tax rates from 39.6 percent to 35 percent and was written to expire on Dec. 31, 2010.
In 2010, Democrats tried to put forward two separate packages of legislation that would extend the cuts, first for earnings up to $250,000, then for earnings up to $1 million. The Democratic-led House passed both bills, but Republican filibuster blocked both in the Senate. President Barack Obama resolved the stalemate by extending all the Bush tax cuts for two more years.
Here’s the irony: Republicans claim to hate deficits, but the facts are clear. If extended indefinitely, the Bush-era tax cuts will account for nearly half of America’s budget deficit by the year 2019.