Economic policy of the George W. Bush administration

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1 Tax Cuts
2 Unemployment
3 Economic Growth
4 Alleged Inequality in Growth
5 Central American Free Trade Agreement
6 References

[edit] Tax Cuts

During his first term, George W. Bush sought and obtained Congressional approval for tax cuts: the Economic Growth and Tax Relief Reconciliation Act of 2001, the Job Creation and Worker Assistance Act of 2002 and the Jobs and Growth Tax Relief Reconciliation Act of 2003. These acts increased the child tax credit and eliminated the so-called "marriage penalty." Arguably, cuts were distributed disproportionately to higher income taxpayers through a decrease in marginal rates, but the change in marginal rates was greater for those of lower income, resulting in an income tax structure that was more progressive overall. Complexity was increased with new categories of income taxed at different rates and new deductions and credits, however; at the same time, the number of individuals subject to the alternative minimum tax increased since it had remained unchanged.

Facing opposition in Congress, Bush held town hall-style public meetings across the nation in 2001 to increase public support for his plan for a $1.3 trillion tax cut. Bush and his economic advisers argued that unspent government funds should be returned to taxpayers. With reports of the threat of recession from Federal Reserve Chairman Alan Greenspan, Bush argued that such a tax cut would stimulate the economy and create jobs. In the end, five Senate Democrats crossed party lines to join Republicans in approving Bush's $1.35 trillion^[1] tax cut program — one of the largest in U.S. history.

[edit] Unemployment

Under the Bush Administration, unemployment peaked at a high of 6.2% in June 2003, and is currently at a low of 4.4%. [1]

[edit] Economic Growth

The economy has remained strong, with Wall Street setting several record highs and the GDP experiencing healthy growth [2][3].

[edit] Alleged Inequality in Growth

Critics argue that the economy, however strong, is only benefiting the wealthy, and not the majority of middle and lower-class citizens. [4][5]

The effect of Bush's tax cuts on the upper, middle and lower class is contentious, with some observers arguing that the cuts have benefited the nation's most wealthy households at the expense of the middle and lower class,^[2] while others have claimed the exact opposite.^[3]

[edit] Central American Free Trade Agreement

One accomplishment of George W. Bush was the ratification of DR-CAFTA. According to Mary O'Grady, Wall Street Journal columnist, this agreement, which is much like NAFTA, has brought great benefits to Central American nations. [6]