6 Myths Pushed by Fox News to Ensure Rich Don't Pay Fair Share: Debunked
Fox News tried to undermine President Obama's tax plan by pushing six debunked tax myths in advance of negotiations on how to avoid a series of automatic tax increases and spending cuts. In reality, Obama's proposal to let tax cuts for wealthy Americans expire will grow the economy and is supported by a majority of Americans.
1. MYTH: Obama's Tax Plan Would Send The Economy "Off A Cliff"
Neil Cavuto: "I Feel Like I'm On The Deck Of The Titanic" And President Obama's Tax Plan Is An "Iceberg."
Fox's Neil Cavuto claimed he felt "like I'm on the deck of the Titanic," and the first iceberg was Obama "sticking to his tax the rich bet":
CAVUTO: Why do I feel like I'm on the deck of the Titanic and frantically trying to point out to the captain, is it me captain or is that a big chunk of ice out there? It's like I'm seeing this whole disaster play out in slow motion. I'd like to be wrong, actually I would love to be wrong, but my opinion here, I think we're sinking fast and we haven't even hit anything yet. We're just steering a very scary course, and little more than five weeks away from the ship hitting the span. Republicans and Democrats are doing it. Maybe something is going on behind the scenes, I'm just not seeing it. What I am seeing is a lot of icebergs. A lot of icebergs. Iceberg one: talk now the President is not only sticking to his tax the rich bet, he's doubling down on it, now insisting on 1.6 trillion dollars in revenues as part of any end-of-year budget fix. Says the economy can more than deal, even though it's actually weaker than it was two years ago. [Fox News, Your World with Neil Cavuto, 11/14/12]
Steve Forbes: Letting "The President Have All Of His Tax Increases" Amounts To Letting "The Economy Go Off A Cliff."
On Fox News' America's Newsroom, Fox regular Steve Forbes claimed if the Republicans in Congress "let the president have all of his tax increases," the economy would "go off a cliff like what's happening in Europe":
FORBES: If the Republicans, Bill, were absolutely cynical they would let the president have all of his tax increases, let the economy go off a cliff into recession like what's happening in Europe, and pick up the political pieces. But thankfully the House Republicans don't want to let that happen. And so I think you're going to get a hard fight. And I think the president's going to learn even though he won the election, he is not the only one who makes decisions in this country. [Fox News, America's Newsroom, 11/14/12]
FACT: Letting Tax Cuts For Wealthy Expire Doesn't Hurt Economy, Increases GDP
Congressional Budget Office: Allowing Tax Cuts For Wealthy To Expire Would Increase GDP By 1.3 Percent. In a November 2012 report, the non-partisan Congressional Budget Office (CBO) said that President Obama's proposal to allow the expiration of the Bush tax rates for higher wage earners while maintaining lower rates for those making $200,000 per year and less would increase GDP by 1.3 percent. From CBO:
The budgetary cost of extending the expiring tax provisions would be lower if certain provisions were allowed to expire that otherwise would apply to some high-income households. According to JCT and CBO's estimates, if the AMT was indexed for inflation beginning in 2012 and all of the other expiring tax provisions were extended except for the specific provisions affecting high-income taxpayers (and the payroll tax cut), revenues would be lower and outlays for refundable credits would be higher than $288 billion in fiscal year 2013 and by $382 billion in fiscal year 2014, compared with CBO's baseline projections.