6 Myths Pushed by FOX News to Ensure Rich Don't Pay Fair Share -- Debunked
Continued from previous page
GASPARINO: I would say that meeting with the president was one of the most intellectually dishonest confabs I've ever seen. Those guys went in there, they were spoken to by the president. If they had anything, any guts ... If they had any guts, they would have said this to the president: You want to raise taxes? You are going to kill small business, you are going to prevent us from hiring, you're going to destroy an already weak economy, and I guarantee those clowns did not say that. [Fox News, America's Newsroom, 11/15/12]
Cavuto: Small Businesses Are "Doomed To Their Own Execution."
On his Fox News show, Cavuto claimed "not one small business leader" was "invited to the White House" during meetings with business leaders following President Obama's re-election. He concluded asking, "why invite the doomed to their own execution?" [Fox News, Your World with Neil Cavuto, 11/14/12]
FACT: Risk To Small Businesses From Expiration Of High-Income Tax Cuts Is "Vastly Exaggerated"
CBPP: "Claims That Letting the High-Income Bush Tax Cuts Expire Would Harm Small Businesses Are Vastly Exaggerated." A post on the Center on Budget and Policy Priorities' Off the Charts blog titled "Claims That Letting the High-Income Bush Tax Cuts Expire Would Harm Small Businesses Are Vastly Exaggerated" noted that "history refutes the doomsday claims" that "letting the high-income tax cuts expire would seriously harm small businesses":
For starters, the frequently cited claim that letting the high-income tax cuts expire would seriously harm small businesses relies on a highly exaggerated definition of "business" that treats any filer with any pass-through income as a business owner. (A pass-through entity passes its profits through to its owners, who pay tax on them at the individual rate.)
[H]istory refutes the doomsday claims. The arguments against allowing the high-end tax cuts to expire on schedule echo those made against President Clinton's proposed 1993 tax increases, which set marginal rates at the levels to which they are set to return when the Bush rate cuts expire. Critics claimed at the time that those tax increases would seriously harm economic growth. As it turned out, job creation and economic growth proved significantly stronger following the 1993 tax increases than following the 2001 Bush tax cuts. Further, small businesses created jobs at twice the rate during the Clinton years than they did under the Bush tax code (see graph).
[Center on Budget and Policy Priorities, 7/19/12]
Joint Committee On Taxation: 3.5 Percent Of Small Business Taxpayers Will Have "Marginal Rates Of 36 Or 39.6 Percent Under The President's Proposal." A memorandum from the Joint Committee on Taxation, a congressional panel that analyzes tax proposals, explains that "3.5 percent of all taxpayers with net positive business income" will face higher rates. All other small businesses that pay taxes as an individual will pay the lower rates. From the Joint Committee On Taxation:
The staff of the Joint Committee on Taxation estimates that in 2013 approximately 940,000 taxpayers with net positive business income (3.5 percent of all taxpayers with net positive business income) will have marginal rates of 36 or 39.6 percent under the president's proposal, and that 53 percent of the approximately $1.3 trillion of aggregate net positive business income will be reported on returns that have a marginal rate of 36 or 39.6 percent. [Joint Committee On Taxation, 6/18/12]
Tax Expert William Gale: "The Vast Majority Of Small Businesses Will Be Unaffected" By Higher Rates On Top Earners. William Gale, co-director of the Urban-Brookings Tax Policy Center, writing for the Washington Post explained how the idea that "allowing the high-income tax cuts to expire would hurt small businesses" was a "myth." From the Washington Post: