After watching a Fox News special hosted by John Stossel regarding best alternatives to address our budget woes, I was appalled about how he left 3 myths unchallenged. My review follows:
John Stossel , Fox News May 28 10 pm – Battle over Best Budget Plan
The Heritage Group ‘won’ a vote from John’s audience while considering budget plans from a bi partisan think tank, another conservative think tank American Enterprise group, and a liberal think tank. The main point I want to make is that although John did a fairly good job in challenging all think tank policies he did not challenge the following few critical ones:
1 – Liberal group’s drive to Repeal the Bush Tax cuts to save $4 trillion in 10 years:
This is totally false. Treasury Dept statistics indicate that tax revenues increased by 30% from 2003 – 2007. Whenever the tax base is decreased long term the US economy responds well and grows enough to generate more Treasury revenues than prior to the tax cuts. For more evidence, go to Treasury Dept statistics for the Kennedy, Reagan tax cuts and also Clinton’s 1997 capital gains tax cuts. Why did not Stossel quickly refute the liberal think tank assertion with these facts. The myth that tax cuts depress Treasury revenues is rampant in the liberal media and with Democrats. Some may be ignorant but others may actually know the truth but since it is against their anti capitalist agenda, they lie!
Obama has consistently gotten away with this myth. Obama has left himself wide open many, many times with this myth when he makes the following point: (not a quote but close) – Under the Bush Tax cuts the rich have gotten richer, their incomes have gone up much more than the middle class. Yes – exactly 100% true – and the extra income added substantially to Treasury coffers! Why no Republican challenges Obama with pure simple facts is incredulous. One other interesting fact: The NY Times reported in 2006 that Treasury revenues will increasing faster than expected and referred to the Bush Tax cuts as a factor. I will try to find this article. Must have been not caught by the NY Times editors / dr. Mgt.
2 – Liberal Think Tank stated that the economy prospered very well in the 90’s without the Bush Tax cuts and thus stated we should go back. Nonsense! There is one very, very significant difference between the 90’s and 2011: US government (federal, local, state) is now 44% of GDP, up from 35%. That is why we cannot go back to Clinton era tax rates and expect positive economic growth. 44% of GDP to public sector crowds out private enterprise, the only true long term jobs producer. Again Stossel blew it.
3 – Bob Beckel – one of the 3 judges stated at least twice when praising the liberal think tank that the free markets caused the 2008 economic debacle. Again go to my blog https://economics501.wordpress.com/2010/12/ for the root cause of the 2008-09 Great Recession. Stossel did not touch this.
Conservatives and Capitalists must do a better job in addressing these myths – before we have a 100% Socialist US.