Bunkum Watch

We might have found some. Bunkum that is. The President says that his tax cuts have increased revenue, and that him and the Boys have been exercising restraint in spending. Perfessor Mark disagrees, as does UC San Diego Economics Perfessor James D. Hamilton. Bloomberg (08.06.05), via Economist's Review:

"President George W. Bush urged Congress to make permanent the tax cuts enacted during his first term and draft legislation to bolster the Social Security program, after the lawmakers return from their August break. 'The tax relief stimulated economic vitality and growth and it has helped increase revenues to the Treasury,' Bush said in his weekly radio address. 'The increased revenues and our spending restraint have led to good progress in reducing the federal deficit.'" Bush Says Congress Needs to Overhaul Tax Code, Social Security

Perfessor Hamiliton notes that the "proposition that by cutting the tax rate we might actually increase tax revenue is a theoretical possibility." He then suggests that this proposition is "the sort of surprising suggestion for which one would want to see rather persuasive evidence before taking too seriously, and such evidence certainly seems hard to find in the historical record." Then there is data. "Tax revenues fell from 20.9% of GDP in 2000 to what is now projected to be 17.4% of GDP for 2005. Federal expenditures rose from 18.4% to 20.1% over the same period." What is it these guys find so persuasive about data? Like it's supposed to mean something?