Here is a column from this week's National Review which describes why the tax cuts implemented by George W Bush are working. And, why Bush should stay the course and continue his tax cut agenda.
The stock market and economy responded: Since June 2003 real GDP growth has averaged 4 percent while growth in real business fixed investment spending has averaged nearly 9 percent on an annualized basis. Real equipment and software spending has averaged 11 percent annualized growth. The stock market is up 26 percent since mid-2003. Tax receipts have surged $275 billion over last year’s levels, the strongest rate of growth in 23 years, with notable strength in “non-withheld receipts” which are tied to capital assets. And the fiscal deficit, which reached 3.4 percent of GDP in 2004, has fallen by nearly $100 billion to 2.5 percent of GDP in fiscal 2005, in line with the 30-year average.