Goodbye Tax Cuts; Hello Protectionism?

The one major flaw of the Bush Administration is its failure to show 1) that his tax cuts have actually raised government revenue dramatically; and 2) the free-trade policies have created a record low unemployment rate of under 5%.

As Larry Kudlow explains, Bush's economic policies (including tax rates) could be reversed as early as 2007 if Democrats were to take Congress. Even though the tax cuts were extended through 2010, a new balanced budget law that included pay-go rules could force Congress to raise rates as soon as the law is passed.

Another interesting tidbit: those who know the economy the best, investors and entrepreneurs, are the most supportive of Bush's economic policies. That should tell you something.