Race to the Bottom.

Criticizes the tax cut policies of United States President George W. Bush, which are characterized as being regressive and harmful to the U.S. economy. In 2003, federal income tax revenue as a share of the economy is projected to fall to its lowest level since 1943. Yet Bush has not proposed raising taxes down the line, or even freezing future tax cuts, but rather is cutting them even more. Just like Bush, former President Ronald Reagan used his first year in office to enact a series of tax cuts tilted toward the well-off that helped plunge the nation into debt. Indeed, Bush--who cut taxes in 2001 and 2002 (a "stimulus" tax cut consisting mainly of business incentives and forgotten by nearly everyone) and is certain to cut them again this year--intends to cut taxes every year he remains in office.There must be some theoretical limit to this administration's desire to cut taxes for the affluent. But there's no sign we have come anywhere near that point. In keeping with its past behavior, the administration has concocted a series of public defenses for its tax cut that bear no relation to its actual purposes. There is, first of all, the usual attempt to put a populist face on a regressive measure. The Bush administration has hit upon another tactic to sell the dividend-tax repeal: Pitch it as a tax cut for the elderly. In order to pump some money into the economy today, it would require hundreds of billions of dollars in long-term revenue loss that will take place long after the economy has recovered. Understanding why this theory is wrong doesn't take a deep familiarity with economic research, just a bit of common sense.