2003 Bush Tax Cuts Prompted Surge in Employment
Created on September 6, 2011
2003 Bush Tax Cuts Prompted Surge in Employment
From 2001 through early 2003, the U.S. was losing an average of 103,000 jobs per month. A full year after the end of the 2001 recession, job growth was still declining. Then in May 2003, the second Bush tax cuts were passed, lowering income, capital gains, and dividend tax rates. By the end of 2007, employment had risen by 8.1 million—an average of 148,000 new jobs each month.
Chart 2 • B 2601
heritage.org
MONTHLY CHANGE IN NON-FARM EMPLOYMENT (in Thousands)
MAY 2003:
Second Bush tax cuts pass
AVERAGE MONTHLY CHANGE, June 2003–Dec. 2007:
148,000 jobs GAINED/
month
AVERAGE MONTHLY CHANGE, March 2001–May 2003:
103,000 jobs LOST/month
TOTAL NON-FARM EMPLOYMENT (in Thousands)
Sept. 2001: Terrorist attacks
June 2001: First Bush tax cuts pass
Dec. 2007: 2007–2009 recession begins
129,841
137,983
Nov. 2001: Recession officially ends
March 2001: Recession begins
Source: U.S. Department of Labor, Bureau of Labor Statistics, “Employment, Hours, and Earnings–National,” Current Employment Statistics, Seasonally Adjusted, Total Non-Farm, All Employees, at http://www.bls.gov/ces/ (July 12, 2011).