Bush: The attacks on our country affected our economy. Corporate scandals affected the confidence of people and therefore affected the economy. My decision on Iraq, this kind of march to war, affected the economy, but we have been through a lot. And what those numbers show is the fact we have been through a lot. But what the people must understand is that instead of wondering what to do, I acted, and I acted by cutting the taxes on individuals and small businesses, primarily. And that, itself, has led to this recovery. [“Meet the Press”, 2/8/04] FACT: Bush Tax Cuts Large Cause of Deficits

Bush Tax Cuts Largely Responsible For Existing Deficits. In 2002, due largely to Bush’s tax cuts, the federal government posted its first budget deficit since 1997. Bush’s tax cuts have had approximately twice as much impact on the deficit as spending increases. In 2003, the deficit reached an all-time high of $375 billion, dwarfing the previous record of $290 billion posted by Bush’s father in 1992. In addition, the $5.6 trillion surplus projected in January 2001 is gone, supplanted with at least $5.0 trillion in deficits over the next ten years. [Center on Budget and Policy Priorities, 10/27/03]

Cost of Tax Cuts Three Times Greater Than Cost Of War On Terrorism. In July 2003, the Congressional Budget Office projected “that the federal government is likely to end fiscal year 2003 with a deficit of more than $450 billion, or close to 4 percent of gross domestic product.” OMB projected a 2003 deficit of $455 billion. CBO data indicates that in 2003 and 2004, the costs of enacted tax cuts is nearly three times as great as the cost of the war on terrorism, including Iraq, homeland security, and Afghanistan. [Center for Budget and Policy Priorities, 1/6/03, 7/8/03, 9/16/03]