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Supply-Siders: 1990s Boom, Bush Recession Only A Flesh Wound!

Like the Black Knight in Monty Python, supply-siders fight on with a bluster utterly undiminished by two decades that have systematically cut the premises out from their philosophy one by one. First they insisted Bill Clinton's upper-income tax hike would destroy the incentive to get rich, create a recession and reduce tax revenues. Then they promised George W. Bush's supply-side tax cuts would deliver a decade of prosperity. Now they're warning that a return to Clinton-era top tax rates will destroy America's economic competitiveness. Here's Wall Street Journal op-ed columnist Daniel Henninger:

Extend the current tax rates for all and free everyone in an economy begging for the chance to be strong again. Yes, the U.S. economy will always be "strong," but it needs to be strong enough to take on all comers and win, which last time I looked was the real American way.

Advocates of keeping the Bush-era tax rates for the rich seem to write as if they have some kind of new plan. In fact, the Bush-era tax rates are currently in place. We're already "free." The question is whether to return to the slavery of the Clinton era tax regime.

I also like this bit about why raising taxes on the rich won't reduce the deficit:

The deficit is dangerous. But raising taxes to cut the deficit is a bailout for the spenders—until proven otherwise.

I think it's been proven: