Uncle Steny Blames Bush

A new report from the Congressional Budget Office (CBO) gives fresh ammunition to supporters and opponents of the tax cuts enacted by President George W. Bush.

The CBO document released Thursday said a short-term extension of the Bush-era tax breaks would boost GDP and cut unemployment, but warned that continuing them for too long would wreak havoc on the economy.

All of the Bush-era tax cuts are slated to expire in December, setting up a showdown this fall in Congress over which tax breaks should be extended.

According to the CBO, continuing the Bush tax cuts would help boost the gross domestic product 0.6 to 1.7 percentage points in 2011 and shave the national unemployment rate by 0.3 to 0.8 percent.

Democratic leaders have long argued that extending the tax cuts would add to the federal deficit and depress the economy.

On the other side of the debate, Republicans, and more than a few Democrats, argue the tax cuts should be kept in place to help the economy recover.

Shortly after the CBO released its report, House Majority Leader Steny Hoyer (D-Md.) blasted Republicans for proposing to extend Bush policies that he claims failed to rescue the economy from a historically tough recession.

“As Democrats fight for fiscal discipline and a strong economy, Republicans are advocating for a return to the exact same agenda that created enormous deficits and drove our economy into the deepest recession in a generation,” he said in prepared remarks.

“Going back to the failed Bush policies of the past is not the right direction for our country,” Hoyer added.

[Note to Uncle Steny: This year's deficit under the Democrats is the largest in US history. Bush was out riding fences on his ranch. --Editor]

Senate Minority Whip Jon Kyl (R-Ariz.) on Wednesday said extending all of the Bush tax breaks is crucial to job creation.

“By extending current tax rates, Congress could go a long way toward accomplishing what the administration has been trying to do for almost two years: create jobs,” he said in prepared remarks. “So far, the Obama administration has tried to create jobs by spending money on initiatives packaged as economic ‘stimulus.’ But that approach has not worked.”

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