Did the Bush Tax Cuts Destroy the Clinton Surplus?
This is another hard question. Clinton had a modest budget surplus by the time he left office in 1999. Bush cut taxes in the early 2000s. Spending continued to increase on social programs, the Iraq war and, as always, interest on the debt. There was no real drop in revenue before the 2010 recession was in full swing. The question seems to be spending, which increased markedly. The Congressional Budget Office suggests that about 32 percent of the deficit (the largest single percentage) derives from increases in spending rather than tax cuts. What is the Relation Between the Tax Cuts and the Deficit? This remains controversial. Democrats traditionally blame tax cuts for both the Reagan and Bush deficits. But the fact seems to be that spending on social programs and military spending continued to increase. The Washington Post claims that even if the economy were to go back to full employment by 2014, the deficit would continue to grow. This suggests that taxes are not the problem, but run
