During the George W. Bush Administration, the economic policy was distinguished by a mixture of cutting taxes, spending government funds to pay for two wars, and the de-emphasis of the government in the private sector caused by the free-market philosophy employed by the administration.
In the first term of his presidency, Bush requested and was given the approval of Congress to pass three different tax-cutting acts. There were the Economic Growth and Tax Relief Reconciliation Act of 2001, the Job Creation and Worker Assistance Act of 2002 and the Jobs and Growth Tax Relief Reconciliation Act of 2003. The function of all these acts was to decrease taxes, reduce capital gains tax, increase the child tax credit, and eliminate the “marriage penalty.” All of these acts, while imposed in different years, are set to expire in 2011.
No matter how you look at it, the truth is that the budget deficit and national debt in 2008 was the result of an increase of more than six times what is was in 2001. The debt rose from $144.5 billion in 2001 to $962.0 billion in 2008. A little over half of the debt incurred between 2001 and 2006 was due to tax cuts. Other major players in the nation’s debt were national security and entitlements.