Republican lies

Putting all the numbers in the C.B.O. report together, we see that continuation of tax and budget policies and economic conditions in place at the end of the Clinton administration would have led to a cumulative budget surplus of $5.6 trillion through 2011 – enough to pay off the $5.6 trillion national debt at the end of 2000.

Tax cuts and slower-than-expected growth reduced revenues by $6.1 trillion and spending was $5.6 trillion higher, a turnaround of $11.7 trillion. Of this total, the C.B.O. attributes 72 percent to legislated tax cuts and spending increases, 27 percent to economic and technical factors. Of the latter, 56 percent occurred from 2009 to 2011.

Republicans would have us believe that somehow we could have avoided the recession and balanced the budget since 2009 if only they had been in charge. This would be a neat trick considering that the recession began in December 2007, according to the National Bureau of Economic Research. They would also have us believe that all of the increase in debt resulted solely from higher spending, nothing from lower revenues caused by tax cuts.

And they continually imply that one of the least popular spending increases of recent years, the Troubled Asset Relief Program, was an Obama administration program, when in fact it was a Bush administration initiative proposed by the Treasury Department that was signed into law by Mr. Bush on Oct. 3, 2008. Lastly, Republicans continue to insist that tax cuts are highly stimulative, often saying that they add nothing to the debt, when this is obviously ridiculous.

Yes…if you happen to believe the Party line on taxes, you have to jettison common sense and basic math skills.

You also have to be largely ignoranof recent history, or be willing to lie about it.

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Bruce Bartlett: The Fiscal Legacy of George W. Bush –
NYTimes.com
http://economix.blogs.nytimes.com/2012/06/12/the-fiscal-legacy-of-george-w-bush/

WASHINGTON – Republicans are calling it “Taxmageddon,” the big tax increase awaiting nearly every American family at the end of the year, when a long list of tax cuts are scheduled to expire unless Congress acts. It would be, GOP leaders in Congress say again and again, “the largest tax increase in American history.”

Except it wouldn’t be, not when you take into account population growth, rising wages, and most importantly, the size of the U.S. economy. When those factors are taken into account, the largest tax increases were those imposed to help pay for World War II — back when the U.S. raised additional revenue to pay for wars instead of simply borrowing. Nevertheless, it is an exaggeration that has proved too tempting for top Republicans in Congress:

_ “Any sudden tax hike would hurt our economy, so this fall — before the election — the House of Representatives will vote to stop the largest tax increase in American history,” House Speaker John Boehner, R-Ohio, said in a May 15 speech in Washington.

_ “Before we leave for August, I expect to schedule a vote on legislation preventing the largest tax increase in history,” House Majority Leader Eric Cantor, R-Va., wrote in a recent memo to fellow House Republicans.

_ “Millions are unemployed and millions more are underemployed and the country is facing the largest tax hike in history at the end of the year,” Senate Republican Leader Mitch McConnell said Thursday in a speech on the Senate floor.

Anyone in the Republican party honest enough to recall how these tax cuts, originally, were both temporary and designed as stimulus? No….ok…just checking.

Anyone in the media going to call out these guys on camera about the reality of the extenssion? No…ok…just checking.

Before the 1940s, the individual income tax applied to only a small percentage of the population. By the end of war, the income tax was levied on most working people, with a top tax rate of 94 percent on income above $200,000.

By comparison, the current top rate is 35 percent, on taxable income above $388,350. If Congress does nothing, the top rate would return to 39.6 percent next year — the same rate that was in place for most of the 1990s.

In dollars, next year’s tax hikes would be the biggest. But the size of the economy is 80 times bigger than it was in the 1940s, which is why economists usually measure taxes and government spending as a share of the U.S. economy.

The 1942 tax increase represented more than 5 percent of the U.S. economy, as measured by the gross domestic product, or GDP. The 1941 tax increase was 2.2 percent of GDP, according to a Treasury Department paper published in 2006.

Next year’s looming tax increase would represent 2.6 percent of GDP — a huge tax hike but not the biggest.

Measured another way, the 1942 tax hike increased federal revenue by a whopping 71 percent, according to the Treasury Department paper. The 1941 tax hike increased federal revenue by 32 percent.

By comparison, next year’s potential tax hike would increase federal revenues by 16 percent, according to CBO.

Funny how when we actually use taxes to pay for wars it leads to “Great” generations. But when we use tax cuts to pay for wars, it’s obviously domestic spending that is causing the problem. The mind boggles, but when these guys keep getting away with spouting this b.s., there’s no reason to stop.

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FACT CHECK: Republicans exaggerate size of ‘Taxmageddon.’
StarTribune.com
http://www.startribune.com/politics/national/158408015.html