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Home Publications Blogs Beat the Press The Post Cleans Up for Republican Tax Cutters

The Post Cleans Up for Republican Tax Cutters

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Sunday, 25 July 2010 07:13

The lead article in the Sunday Post reported on the battle over extending President Bush's tax cuts. At one point it told readers that: "because they [the tax cuts] were expected to eventually cause huge deficits, Republicans wrote them to expire in 2010."

Actually the story is somewhat more pernicious. President Bush had set a budget target for his tax cuts. Had they run through 2011 the cost would have exceeded his target. Therefore they wrote the law so that the cuts ended in 2010, keeping the 10-year cost within his target.

The article also includes the bizarre statement: "And with unemployment at 9.5 percent, even some Democrats are queasy about raising taxes on high earners -- a category that includes many small-business owners -- when policymakers are trying to encourage them to create jobs."

Actually, there is little evidence that raising taxes on high income households will have any notable impact on job creation. (Job growth was quite rapid under the Clinton era tax rates.) Furthermore, many of the Democrats who oppose raising taxes on the wealthy have opposed many or all of President Obama's stimulus measures, indicating that they have little concern about job creation.

It is certainly more plausible that these politicians are worried about campaign contributions from high income households, an issue that remarkably was never mentioned once in this article.

Comments (4)Add Comment
Higher taxes encourage job growth
written by Benedict@Large, July 25, 2010 7:26
Don't higher tax rates actually ENCOURAGE job growth by making it more attractive to leave profits within the vehicles that generated them?
...
written by izzatzo, July 26, 2010 3:42
It is certainly more plausible that these politicians are worried about campaign contributions from high income households ...


Talk about a death spiral ... less stimulus, more unemployment, fewer high income households, more dependence by pols on the remaining ones, even less stimulus, even less high income households ...
...
written by Queen of Sheba, July 27, 2010 12:16
The debate over allowing Bush's tax cuts to expire on incomes over $200,000 ($250,000 for couples) is going to be full of disingenuous, if not outright dishonest, claims and predictions. I hope Dean's red pencils are sharpened as the coverage in the media will certainly offer him ample opportunities to make corrections. I'm in a pool to pick the first day the Republicans "negotiate" the Democrats to a limit of $1 million or more.
Just another Lori Montgomery written editorial
written by mike, July 29, 2010 8:26
This is another Lori Montgomery piece.

Could you start giving her the "credit" for the Washington Post pieces that she produces. She is the most notable of the Post reporters for always putting the editorial into the reporting. She is up in Megan McCardle's reliability range. If you choose to read it, understand that it is for entertainment, not for a better understanding of the facts.

The Post's editors bear a share of the shame since they continually front-page her stuff, but really, Lori Montgomery deserves special recognition by Beat the Press.

Perhaps some name to go with her place of employment, "Fox on Fifteenth"?

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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