6 Myths Pushed by Fox News to Ensure Rich Don't Pay Fair Share: Debunked
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Wash. Post: Job Loss Claim Based On Ernst & Young Study Is "Simply Absurd." Washington Post fact checker Glenn Kessler reviewed a claim made by Republican congressmen that tax increases proposed by Obama would "destroy nearly 700,000 jobs," based on the analysis by Ernst & Young. Kessler gave the claim three Pinocchio's, calling it "simply absurd," and explained the flaws with the Ernst & Young study, including that "the study never examined what Obama claims he will do with the revenue":
First, the study was underwritten by the White House's opponents. Second, the study never examined what Obama claims he will do with the revenue -- dedicate it to deficit reduction. And finally, the figure is so "long term" -- more than 10 years away -- that it is absurd to suggest those jobs would be lost in the near term. [The Fact Checker, The Washington Post, 11/9/12]
National Economic Council's Jason Furman: Conclusions Of Ernst & Young Are "Dramatically Out-Of-Line With Estimates By Other Analysts." Jason Furman, the Principal Deputy Director of the National Economic Council, wrote that the Ernst & Young study "fallaciously assumes that the tax cuts are used to finance additional spending, ignoring the benefits of what the President actually proposed," and is "dramatically out-of-line with estimates by other analysts":
The study fallaciously assumes that the tax cuts are used to finance additional spending, ignoring the benefits of what the President actually proposed which was to use the revenue as part of a balanced plan to reduce the deficit and stabilize the debt.
Even setting aside the fact that the study ignores the effects of the President's tax proposals on short-term growth and long-term deficit reduction, the conclusions are still dramatically out-of-line with estimates by other analysts, including not only the Congressional Budget Office but also the Bush Administration Treasury Department. [The White House Blog, WhiteHouse.gov, 7/17/12]
Media Matters: Report Was Prepared On Behalf Of Partisan, Conservative-Leaning Industry Organizations. A Media Matters investigation of Ernst & Young found that the report was prepared on behalf of partisan, conservative-leaning industry organizations that have "opposed Obama administration policies, including the Independent Community Bankers of America, the National Federation of Independent Business, and the United States Chamber of Commerce." [Media Matters, 7/18/12]
6. MYTH: Raising Taxes On The Rich Won't Help Fix Deficit Crisis
Brian Kilmeade: Raising Taxes On The Wealthy Will Not "Make Any Significant Difference To The Trillion Dollar Over Budget Situation."
Fox and Friends co-host Brian Kilmeade claimed that raising taxes on the wealthy is useless because "there's not a single person who knows how to add that believes that it will make any significant difference to the trillion dollar over budget situation we are in right now." He concluded, "Why does [Obama] act like that means something?" [Fox News, Fox and Friends, 11/15/12]
Varney: Increasing Taxes Would Only Pay "The Interest On The National Debt For Ten Weeks." On Fox and Friends, Varney argued that increasing taxes on higher income taxpayers was pointless because the "87 billion dollars per year" in revenues would only pay "the interest on the national debt for ten weeks." He also claimed that Obama "thinks that if you tax the top two percent some more, you will pay for all the goodies, all the handouts that we've got going." [Fox News, Fox and Friends, 11/15/12]
FACT: Letting Tax Cuts For Upper-Income Earners Expire Would Lower Deficit
NY Times: President Obama's Proposal To Allow The Bush Tax Cuts To Expire For Wealthier Americans Would Raise $850 Billion Dollars In A Decade. The New York Times reported that "economists estimate that letting the cuts expire for people above that threshold would generate $850 billion over 10 years":