You may or may not know this (if you get your news from the MSM you don’t), but when the Democrats pushed through that rescue package for the
states unions, all $26 billion of it, they defeated 2 amendments offered by Republicans that would have extended some of the Bush tax cuts from 2001 and 2003. They were soundly defeated. Yet, leading up to the midterm elections in 87 days, the MSM is putting doing yeoman’s work in framing a story that Democrats will keep the tax cuts for those making less than $250,000 annually. To this day, no plan exists for extending
any of the cuts. Thus, citizens are being forced to fact check the fact checkers. And one such citizen is doing just that
through her facebook page where she now has more than 2,000,000 fans:
Yesterday, PolitiFact.com fact-checked my statement about the coming $3.8 trillion Obama tax hike – the largest tax increase in history. They did such a bad job of it, however, that I feel compelled to fact-check the fact-checkers.
First of all, they claim that there are Democrat proposals which would “keep the tax cuts for individuals who make less than $200,000 and couples who make less than $250,000.”
Unfortunately for PolitiFact, no such proposal exists. They admit as much, by the way, when they state that “There are no formal congressional proposals yet to keep the Bush tax cuts in place, so we don’t have precise estimates from official sources like the nonpartisan Congressional Budget Office.” That doesn’t stop them, though, from claiming I “confuse the issue” by “using numbers that assume all the tax cuts are going away. That is not the Democratic plan nor is it President Obama’s plan.”
Plan? What plan? There is no plan. All we have is smoke and mirrors based on an old Obama campaign pledge that if elected, he would exempt families making less than $250,000 a year from “any form of tax increases.” But this pledge was already watered down before he was even elected. First vice-presidential candidate Joe Biden lowered it to $150,000. Then campaign surrogate Gov. Bill Richardson lowered it even further to $120,000.
A few months after the inauguration, even that last promise disappeared in a puff of smoke. When asked to reaffirm the White House’s commitment to the campaign promise of no tax increases for families earning less than $250,000, Obama’s spin doctor David Axelrod declared the President had “no interest in drawing lines in the sand.”
The truth is that as of today, Democrats haven’t taken any action to extend any part of the 2001 and 2003 tax cuts for any income group – and in this case doing nothing equals hitting American taxpayers with a massive $3.8 trillion tax increase.
What we do know for certain is that the White House is more than willing to raise taxes on families with incomes of less than $250,000. Democrat Senator Max Baucus admitted as much during the debate about Obamacare when he stated that “One other point that I think it’s very important to make is that it is true that in certain cases, the taxes will go up for some Americans who might be making less than $200,000.”
PolitiFact doesn’t dispute the $3.8 trillion estimate of the cost of repeal of the 2001 and 2003 tax cuts. It admits that “Palin’s estimate of $3.8 trillion over 10 years is within a reasonable range, if you’re talking about all taxpayers.” And yet somehow it continues to argue that I’m wrong, based on a proposal it admits doesn’t exist which in turn is based on a phantom campaign pledge which Democrats have already broken anyway. I call that a “Pants on Fire” statement.
To prevent PolitiFact from making similar mistakes in future, it would be helpful if the White House and the Democratic Congressional leadership finally mustered the courage to table their plans to let the 2001 and 2003 tax cuts expire. Mr. President, publish your proposals, and we’ll duke it out. You can argue in favor of a multi-trillion dollar tax hike in an age of economic uncertainty and mass unemployment, and we’ll argue for fiscal sanity combined with serious spending cuts. I for one look forward to such a debate.
In the meantime I suggest the St. Petersburg Times hires a few extra staff to fact-check its fact-checkers. It might help it prevent being caught with its “pants on fire” again in the future.
- Sarah Palin
I'll state once again that the Bush tax cuts more than paid for themselves, and letting them sunset will be a tax increase and a great big one at that. Regarding those Bush tax cuts, a series of tax decreases were passed in 2001. But 2 things happened that walloped the economy: 1) the 911 terror attack, and 2) the dot-com bust. Here's what happened
with federal revenues:
Note though that the economy recovered and revenues were edging up in 2003 when additional tax cuts were passed. Now look what happened after the 2003 tax cuts:
There's growth for you. So where's the 'cost' of these tax cuts? It is a figment of liberal economists' imaginations. Yet they continue to be demonized and blamed for part of the current deficit. They are not. It is overspending, rather than lower tax rates that are responsible for the deficits. Heck, even
the Washington Post calls it a myth:
Five myths about the Bush tax cuts
4. The Bush tax cuts are the main cause of the budget deficit.
Although the cuts were large and drove revenue down sharply, they are not the main cause of the sizable deficit that exists today. In 2007, well after the tax cuts took effect, the budget deficit stood at 1.2 percent of GDP. By 2009, it had increased to 9.9 percent of the economy. The Bush tax cuts didn't change between 2007 and 2009, so clearly something else is to blame.
Drove revenues down sharply? I'm sure that one year blip had nothing to do with the dot-com bust or the 911 terror attack. Good grief - these people really do live in an echo chamber. The tax cuts more than paid for themselves. How else could government revenues
grow even though the tax rates have been
lowered? What do they think will happen when taxes increase? Let's for instance look at capital gains taxes. The rate was reduced to 15% in 2003 after the revenues have been sliding every year since 200 due to the dot com bubble bursting. You know what happened?
Look here:
Now that's called paying for itself. From a few weeks ago, I had this:
Exploding the myth that Bush tax cuts caused the deficit. Here's a graphic that I've seen thrown out by liberals many times:
That 'cost' of the Bush tax cuts is from someone's imgaination. As I mentioned in that prior post, note that 1) the Bush tax cuts that
expire this year are accounted into the deficit in 2011, 2012, 2013, 2) spending increases are totally missing, and 3) So is the interest we pay on our growing debt. Matter of fact is that the FY 2007
federal budget - the last one put together by Republicans - was $2.7 trillion. Since Pelosi and Reid took over the federal budget is at $3.8 trillion.
The deficit is entirely comprised of new Democrat spending since 2007.