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6 Myths Pushed by FOX News to Ensure Rich Don't Pay Fair Share -- Debunked

Obama's proposal to let tax cuts for wealthy Americans expire will grow the economy and is supported by a majority of Americans. So of course Fox News is in frantic spin mode.

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2012 Election Exit Polls: 6 In 10 Voters Favor Increasing Taxes. National exit polling from the 2012 election also shows public support for raising taxes. From Politico:

Six in 10 voters nationwide say they think taxes should be increased, a welcome statistic for President Barack Obama and a sign that the president's attacks on Mitt Romney's proposed tax cuts for the wealthy may have been effective.

Almost half of voters said taxes should be boosted on Americans making more than $250,000 per year, and one in seven voters said taxes should be increased on all Americans.

Only about a third of voters said taxes should not be increased at all, the exit polls showed. [Politico,  11/6/12]

5. MYTH: Ernst & Young Report Is Evidence That Raising Tax Rates On The Wealthy Would Hurt The Economy

Megyn Kelly: Ernst & Young Report Predicts "Raising Tax Rates Even On The Wealthy Would Hurt The Economy." 

On America Live, Fox host Megyn Kelly noted that President Obama's economic plan included "budget cuts and tax hikes," but cited an Ernst & Young study that predicts "raising tax rates even on the wealthy would hurt the economy":

KELLY: President Obama scheduled now to meet with business leaders -- busy day at the White House -- to talk about budget cuts and tax hikes. It's all part of his plan to help avoid the fiscal cliff. But in the last 24 hours we got reports on two different studies, one by Ernst and Young, the other by the Congressional Budget Office, that predict that raising tax rates even on the wealthy would hurt the economy. [Fox News, America Live,  11/14/12]

Elizabeth MacDonald Cites Ernst & Young Study To Claim "Higher Marginal Tax Rates Will Result In A Smaller U.S. Economy." 

Fox Business' Elizabeth MacDonald repeatedly cited the Ernst & Young study to claim "higher marginal tax rates will result in a smaller U.S. economy, fewer jobs, less investment, and lower wages":

MacDONALD: According to a new study by the accounting firm Ernst & Young, the tax hikes wipe out about 710,000 jobs at small businesses across the country and increase unemployment by 0.5 percent. The tax hikes would cause real after tax wages to fall by 1.8 percent, triggering a decline in workers' living standards. That's what Ernst & Young says. Now the accounting firm also found U.S. GDP would fall 1.3 percent, or by 200 billion dollars. The president's tax hikes could hit a broad range of small businesses, Ernst & Young says. The new tax hikes would hit small businesses that employ 54 percent of the private-sector workforce but pay 44 percent of federal business income taxes. Ernst & Young says, quote, higher marginal tax rates will result in a smaller U.S. economy, fewer jobs, less investment, and lower wages. [Fox News, Happening Now,  11/14/12]

FACT: Ernst & Young Report Prepared On Behalf Of Partisan Organizations And "Never Examined" Obama's Full Proposals

Ernst & Young: "Higher Marginal Tax Rates Result In A Smaller Economy, Fewer Jobs, Less Investment, And Lower Wages." The study produced by the accounting firm Ernst & Young claimed to examine Obama's proposed higher marginal tax rates, and found that those rates "have significant adverse economic effects in the long-run":

This report finds that these higher marginal tax rates result in a smaller economy, fewer jobs, less investment, and lower wages. Specifically, this report finds that the higher tax rates will have significant adverse economic effects in the long-run: lowering output, employment, investment, the capital stock, and real after-tax wages when the resulting revenue is used to finance additional government spending. [Ernst & Young,  July 2012]

 
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