Groundhog day on Democrat Lies on Tax Cuts
Posted on 27 July 2010
Just when you thought that the current congress and administration couldn’t channel George Bush any more to cover for their own significant issues, along comes the expiration of the ‘Bush Tax Cuts’ or as the Democrats call them, the ‘Bush Tax Cuts for the Rich’. This entire argument when Bush was in office was a collection of lies promulgated by a class envy argument that never added up in fact. So I guess we have to revisit the studies that were done about the tax cuts to refresh everyone’s memories on what the talking points will be. From the Heritage Foundation:
Ten Myths About the Bush Tax Cuts-and the Facts
Myth #1: Tax revenues remain low.
Fact: Tax revenues are above the historical average, even after the tax cuts.Myth #2: The Bush tax cuts substantially reduced 2006 revenues and expanded the budget deficit.
Fact: Nearly all of the 2006 budget deficit resulted from additional spending above the baseline.Myth #3: Supply-side economics assumes that all tax cuts immediately pay for themselves.
Fact: It assumes replenishment of some but not necessarily all lost revenues.Myth #4: Capital gains tax cuts do not pay for themselves.
Fact: Capital gains tax revenues doubled following the 2003 tax cut.Myth #5: The Bush tax cuts are to blame for the projected long-term budget deficits.
Fact: Projections show that entitlement costs will dwarf the projected large revenue increases.Myth #6: Raising tax rates is the best way to raise revenue.
Fact: Tax revenues correlate with economic growth, not tax rates.Myth #7: Reversing the upper-income tax cuts would raise substantial revenues.
Fact: The low-income tax cuts reduced revenues the most.Myth #8: Tax cuts help the economy by “putting money in people’s pockets.”
Fact: Pro-growth tax cuts support incentives for productive behavior.Myth #9: The Bush tax cuts have not helped the economy.
Fact: The economy responded strongly to the 2003 tax cuts.Myth #10: The Bush tax cuts were tilted toward the rich.
Fact: The rich are now shouldering even more of the income tax burden.
You can follow the detail behind this research by Heritage by following this link. Myth 10 has always been my favorite
as it has been at the heart of the class warfare argument-’stick it to the rich guy by repealing the cuts’. And this charge from Heritage
based on the CBO tells it all.
1 Response to Groundhog day on Democrat Lies on Tax Cuts
Concerning “Myth #2″, I heard a stat that stated that only 4% of the deficit resulted from the “Bush Tax Cuts”. Once that statistic was reported, the Democrats took the fall-back position that the deficit was a combination of the tax cuts and Bush’s two wars. Truth seems to be such a slippery item these days. Thank you for trying to nail it down.