The AP is Pushing False Premises on Tax Policy

lbrmdbsThe perfect example of the media pushing a false narrative can be found in the recent AP story “Republican field pushes tax cuts bound to drive up debt.” According to the story major Republican candidates have proposed to cut taxes especially for the wealthy while ignoring the deficit. What will the results of these plans be according to the AP? “The plans would blow open deficits over the next decade that economists estimate ranging from $3.6 trillion to $12 trillion.”

This story pushes two false premises. The first being that tax cuts will cause bigger budget deficits. The second being that Republicans don’t care about budget deficits. Let us examine these premises to see if they are correct.

The premise that tax cuts will blow up the deficit presupposes that a tax cut will lead to less revenue. However when JFK, Reagan and Bush cut tax rates tax revenue increased. That is because they had a stimulative effect on the economy. For example during the Reagan Administration tax revenue increased by 54% from 1983 to 1989. The same thing happened with the Bush tax cuts, with revenues increasing by 44%.

However each time the budget deficit grew because Congress increased spending. Even during the Obama Administration which has seen the top tax rate increase from 35% to 39%, and the institution of a surtax of 3.8% on investment incomes the deficit has exploded. President Obama has presided over 4 years of trillion dollar deficits. In 2014 tax revenues reached $3 trillion but the deficit was still around $500 billion. President Obama isn’t satisfied with this level of spending because in his proposed 2016 budget he wants to spend $4 trillion. It should be obvious that tax revenues are not the problem, spending is the problem.

What about the premise that Republicans don’t care about the deficit? According to the AP the Republican candidates are saying “ there is nothing to be gained from being responsible that way(being deficit neutral). You may as well do the plan that your base is going to love.” Republicans aren’t pushing their tax plans just because their base will love it but because it will lead to economic growth. They have also been focused on the driver of the deficit which is out of control spending and our bankrupt entitlement programs.

Republicans opposed Obamacare not because they don’t want the poor to have healthcare but because it is going to lead to higher deficits. They have attempted to curb Medicare spending by turning it into a block grant program that the States control. Republicans want to reform Social Security by giving individuals greater choice in the program. And lastly they forced the President to accept the sequester which will lead to $2 trillion in spending cuts over 10 years.

Media bias displayed in the form of false premises has to be confronted. These false premises allow an out of control Congress to continue to expand Government spending while demonizing the American people for wanting to keep more of their money. The only hope we have in controlling our Leviathan Federal Government is to defeat these false premises with the truth.

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