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Obama’s big lie on cutting taxes
Dec 17, 2012 | 1973 views | 15 15 comments | 2 2 recommendations | email to a friend | print

One of the big advantages that President Obama has as he plays “chicken” with the Congressional Republicans along the “fiscal cliff,” is that Obama is a master of the plausible lie, which will never be exposed by the mainstream media — nor, apparently, by the Republicans.

A key lie that has been repeated over and over, largely unanswered, is that President Bush’s “tax cuts for the rich” cost the government so much lost tax revenue that this added to the budget defici t— so that the government cannot afford to allow the cost of letting the Bush tax rates continue for “the rich.”

It sounds very plausible, and constant repetition without a challenge may well be enough to convince the voting public that, if the Republican-controlled House of Representatives does not go along with Barack Obama’s demands for more spending and higher tax rates on the top 2 percent, it just shows that they care more for “the rich” than for the other 98 percent.

What is remarkable is how easy it is to show how completely false Obama’s argument is. That also makes it completely inexplicable why the Republicans have not done so.

The official statistics which show plainly how wrong Barack Obama is can be found in his own “Economic Report of the President” for 2012, on page 411. You can look it up.

You may be able to find a copy of the “Economic Report of the President” for 2012 at your local public library. Or you can buy a hard copy from the Government Printing Office or download an electronic version from the Internet.

For those who find that “a picture is worth a thousand words,” they need only see the graphs published in the November 30 issue of Investor’s Business Daily.

What both the statistical tables in the “Economic Report of the President” and the graphs in Investor’s Business Daily show is that tax revenues went up — not down — after tax rates were cut during the Bush administration, and the budget deficit declined, year after year, after the cut in tax rates that have been blamed by Obama for increasing the deficit.

Indeed, the New York Times reported in 2006: “An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the projected budget deficit this year.”

While the New York Times may not have expected this, there is nothing unprecedented about lower tax rates leading to higher tax revenues, despite automatic assumptions by many in the media and elsewhere that tax rates and tax revenues automatically move in the same direction. They do not.

The Congressional Budget Office has been embarrassed repeatedly by making projections based on the assumption that tax revenues and tax rates move in the same direction.

This has happened as recently as the George W. Bush administration and as far back as the Reagan administration. Moreover, tax revenues went up when tax rates went down, as far back as the Coolidge administration, before there was a Congressional Budget Office to make false predictions.

The bottom line is that Barack Obama’s blaming increased budget deficits on the Bush tax cuts is demonstrably false. What caused the decreasing budget deficits after the Bush tax cuts to suddenly reverse and start increasing was the mortgage crisis. The deficit increased in 2008, followed by a huge increase in 2009.

So it is sheer hogwash that “tax cuts for the rich” caused the government to lose tax revenues. The government gained tax revenues, not lost them. Moreover, “the rich” paid a larger amount of taxes, and a larger share of all taxes, after the tax rates were cut.

That is because people change their economic behavior when tax rates are changed, contrary to what the Congressional Budget Office and others seem to assume, and this can stimulate the economy more than a government “stimulus” has done under either Bush or Obama.

Yet there is no need to assume that Barack Obama is mistaken about the way to get the economy out of the doldrums. His top priority has always been increasing the size and scope of government. If that means sacrificing the economy or the truth, that is no deterrent to Obama. That is why he is willing to play chicken with Republicans along the fiscal cliff.

Thomas Sowell is a senior fellow at the Hoover Institution at Stanford University His Web site is www.tsowell.com.



Comments
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nckey
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December 18, 2012
It seems to me that some of you on this website has a serious problem with people of color. Every race came out and voted for President Obama in 2012. The Republican depended on one race is causing a lot of problems for them. Get use to people from other races being in high positions. Finally, if you guys stop listen to wrong news Fox, the drudge report, and all these other hate information networks, then you wouldn't have so much hate in your heart. Ask yourself; Lord, why am I so hateful of people of other races?
sagehopper
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December 19, 2012
You have it all wrong...Obama's policies and incompetance has damaged Americans of every creed and color, and nationality. He has doubled our debt, given trillions away for projects nobody can name, with results nobody can see. He has refused to plug our borders, and has refused to follow the words of his oath of office. His color has literally nothing to doo with his incompetance. His whole life was systematically hidden from scrutiny. Why? Has nothing to do with his race, which happens to be not black..but black, white, and Arab...He just doesn't cut the mustard. Another 4 MIL vacation coming upp, BTW..were you invited to go along with him?
ROSSisRIGHT
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December 21, 2012
nckey: I read your first sentence and realized you are too ignorant for me to even consider a thought out reply........... God grow up, you....nevermind, just grow up. You are being laughed at by everybody who counts.
golfman60
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December 24, 2012
Ask yourself, Lord, why am I so uninformed?

Has it occurred to nckey that the author, Mr. Sowell, is black? No comment on the content of his column. No disputing Mr. Sowell's facts. Can't call him a racist, so you just move past the the meat.

When you have no argument, just call other people racists and haters.
corklock
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December 17, 2012
Psalm 109:8 Let his days be few; and let another take his office. ????

Various scriptures remind us to pray for our leaders and some as 1 Tim 2:1 even say give thanks for our leaders. We really should be thankful for our great country. With its fault and our own many faults also. Too many perfect people will spoil this Nation as it seems our own County is SUFFERING.

Course you can quote Psalm 109:8 Let his days be few; and let another take his office.

But is that prayer good and acceptable in the sight of God our Savior?

Racist bigots might find that verse useable in hate?

Yet Ephesians 1:4 says:

Blessed be the God and Father of our Lord Jesus Christ

That we should be Holy and blameless before him in love?

2 Timothy 4:14 Alexander the coppersmith did me much evil: the Lord reward him according to his works:

(Apostle Paul wasn’t praying using this verse in hate either)

Would our Lord and Savior find a true Christian blameless with such rancor in their heart?

Perhaps more prayer and less stone tossing?
PercyKution
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December 17, 2012
I've read in that same book you're quoting from where God said two men ought not lay together. Seems like the same-sex marriage democrats didn't read that part. You reckon?
BBBD
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December 17, 2012
Praying for wisdom for our leaders doesn't mean remaining silent when they lead us in the wrong direction. The people of Israel were all too quick to follow their leaders down the road of destruction and paid dearly for it.

While we strive daily to be more like Jesus, it will not be our actions that make us blameless before the Lord. Only by the blood of Jesus will we be seen as without fault.
sagehopper
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December 17, 2012
President Obama's entire life is a lie. If it were truth, he wouldn't have to hide it, or have to evade publishing it. America still does not know who he is, or what where he is from. Or whom it is he worships.
PercyKution
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December 17, 2012
Well, if YOU woke up every morning in bed next to a semi-evolved ugly-as-Hell female gorilla you wouldn't want to know who you were or where you came from either.
onetwenty
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December 18, 2012
percy i just spit coffee all over my screen lol! thats a good one.
sagehopper
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December 19, 2012
You have a valid point, Perce.. Heehee ! I am married to a beautiful Lumbee girl from Pembroke, so I don't have that specific problem. Keep up the good work.
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