And get this: "At 1.5 percent of GDP, the budget deficit is now lower than it was in 24 of the past 30 years." President Bush will have fulfilled his promise to cut the budget in half despite spending on the war, Katrina and even entitlements.
Heritage cautions that out of control entitlement spending "still threatens America's fiscal and economic future." But we should note that here, too, Democrats ruthlessly played the class warfare card to prevent President Bush from accomplishing entitlement reform.
Students of the Reagan era know the Democrats' contention that the rich got richer and the poor got poorer during that period is pure rubbish. Income increased for all income groups in the Eighties.
Surprise, surprise. The same is proving true for the Bush cuts. Mounting evidence contradicts the Democrats' shameless efforts to downplay the Bush economy by claiming the gap between the "haves" and "have nots" is growing.
Heritage's Rea. S. Hederman Jr. notes that the U.S. Census Bureau's annual report shows that in 2006, the growing economy increased the median family income and lowered the poverty rate, and income inequality did not statistically increase. This is without even factoring in tax transfer payments from upper to lower income groups.
Hederman concludes, "The Census report refutes the notion that 'the rich are getting richer and the poor are getting poorer.' Instead, all quintiles are growing wealthier with more money income."
Democrats will not be deterred by these reports and, like their colleague John Edwards, will cite Census data that there are 36.5 million poor Americans who "do not have enough money for the food, shelter and clothing they need." But here again, closer inspection paints a different picture.
Heritage's Robert Rector documents that "if poverty means (as Edwards claims) a lack of nutritious food, adequate warm housing and clothing, then very few of the 36.5 million people identified as 'poor' by Census are, in fact, poor."
If all else fails, Democrats can always fall back on the supposedly 47 million uninsured Americans to confirm their gloomy picture of America and usher in a socialistic solution. Sorry, but these numbers are grossly distorted, too, as the Investors Business Daily editors cogently illustrated in their Wednesday editorial, "The '47 Million Uninsured' Myth."
It's past time to extend the Bush tax cuts.