This seems like a good moment to remember this section of The Price of Loyalty by Ron Suskind:

As the meeting in Mr. Cheney's office progressed, it became clear that the vice president was ready to weigh in on what the president should do to bolster the economy, and his standing with voters worried about the economy, as the second half of his term began. A package of tax proposals, led by a 50% cut in the individual tax on dividends, had been all but buried since Mr. O'Neill took his stand against it in early September...

After the midterms, though, Mr. O'Neill could sense a change inside the White House...Now Mr. Cheney mentioned them again, how altering the double taxation of dividends would provide some economic stimulus. Mr. O'Neill jumped in, arguing sharply that the government "is moving toward a fiscal crisis" and then pointing out "what rising deficits will mean to our economic and fiscal soundness." Mr. Cheney cut him off. "Reagan proved deficits don't matter," he said.

Mr. O'Neill was speechless, hardly believing that Mr. Cheney -- whom he and Mr. Greenspan had known since Dick was a kid -- would say such a thing. Mr. Cheney moved to fill the void. "We won the midterms. This is our due." Mr. O'Neill left Mr. Cheney's office in a state of mild shock.

Without the Bush administration's giant tax cuts for the richest people in America, the government would have more room to maneuver now. The options that remain today are less palatable.

Another important effect of the tax cuts is that a fraction of them will be used by recipients to support political resistance to any constructive actions to deal with our current problems. So it really was a win-win-win.