About That Time The Heritage Foundation Said The Bush Tax Cuts Would Pay Off The National Debt By 2010

George W. Bush

Photo: AP

Did you hear the one about the Heritage Foundation predicting the Bush tax cuts paying off the national debt?It happened, in 2001.

A link from Travis Thornton Tweeted by Reason magazine editor Matt Welch has prompted us to revisit their idea. 

A decade ago, the nation’s debt stood at $3.1 trillion.

According to Foundation analysts D. Mark Wilson and William W. Beach, the cuts would achieve the following results (among others):

“Significantly increase economic growth”  by 0.2 percentage points per year through 2010.

“Substantially increase family income” by $4,544 through 2010.

Increase family savings” to $1,017 by 2010.

And in a manner left unexplained, the above phenomena will wipe out the debt:

The Bush plan would decrease federal debt to the lowest possible level at which it could be redeemed–$818 billion in FY 2011 (see Chart 4).25 From FY 2001 to FY 2011, federal debt as a percentage of GDP would decline from 30.5 per cent to just 4.7 per cent under the plan.

Ah, the good old days.

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