For Democrats, tax cuts are ‘expensive’ – Hogwash, government is expensive
Austan Goolsbee is a con artist who is a professional at playing the class warfare card. Goolsbee, President Obama’s chair of the Council on Economic Advisors, created a White House video trying to get those of us who make less than $200,000 a year ticked off at the rich folk. Dan Mitchell picks Goolsbee apart point-by-point in a recent video from the Center for Freedom and Prosperity Foundation.
Before we get to the video, here’s a transcript snippet from Goolsbee, right around the 2:30 mark of Mitchell’s video.
In the Republican plan however, people making more than $1 million a year, are getting a tax cut of more than $100,000. That’s expensive.
Giving these big red eggs to the very high income people would cost $700 billion that we would have to borrow to give it.
Is he friggin’ kidding me? There are no tax cuts, the tax cuts were put in place in 2001 and 2003, resulting in a huge increase in the amount of tax revenue flowing to the federal government. The problem is the federal government went on a huge spending spree and we spent it all. And more!
What we’re taking about now is a huge tax increase that may well indeed keep our economy in a coma for many more years to come. Mitchell notes…
The administration’s simplistic estimates – which are based on the absurd notion that tax policy has zero impact on economic output – are laughably inaccurate.
That’s just one point Mitchell hits Goolsbee on in this video. Watch the entire piece.
As a reminder, I wrote a piece back in Nov. 2008 – reposted in Feb. 2009 – concerning the effect of the 2001 and 2003 tax cuts. There was a 36 percent increase in federal tax revenue between 2003 and 2007 after the 2001/2003 tax cuts. Corporate tax revenue went up so much the tax burden comparison between corporations and individuals shifted in favor of the individual by more than 10 percent!
The problem? Spending went totally out of control.
Here is the original White House video from Sept. 30. Note to Goolsbee … a big red “goose egg” means your getting nothing. Come up with a better analogy.
I agree: tax cuts taking effect 8-10 years ago are now tax policy, and revoking them (or letting them sunset, in this case) is nothing more than a massive tax increase designed to pay for the Democrat's wild spending sprees since 2007. If it were just insanely rich folks, that would be one thing, but the real victim in the Democrat's scheme is small business, the backbone of our economy. A backbone this scheme is designed to break.
They are playing the same word games (read it: deception) as they do deliberately confusing immigration and illegal immigration.
I see, in the chart posted in Feb. 2009, a 25% decrease in the net taxes collected before a reversal and the 36% increase.
That is the normal momentum that has to be overcome. Net result: less taxes, more money for the government when it all settles down.
Kind of like "more guns, less crime" that lefties also try to discredit.
He reminds me of Joe Isuzu (http://www.youtube.com/watch?v=xFIcjfWvNYw&NR=1)… 😉