Issues: Taxes

American Future Fund: “Frustrating”

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American Future Fund (AFF) is trying to convince New Mexico voters that Rep. Martin Heinrich is responsible for the effects of the Great Recession, which started wreaking havoc on the economy well before Heinrich took office in January 2009. In the process, AFF throws out a misleading statistic on New Mexico’s unemployment and criticizes Heinrich over his support for the stimulus, which prevented an even greater economic catastrophe, created American jobs, and cut taxes for millions.

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Crossroads GPS: “Sense”

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Crossroads GPS uses Montana Sen. Jon Tester’s vote in favor of the Middle Class Tax Cut Act to accuse him of supporting tax hikes on Montana families and small businesses. In reality, Tester’s vote supported an extension of the Bush tax cuts for all income up to $200,000. Those earning more than that – approximately the top 1.4 percent of households – are, contrary to Crossroads’ suggestion, very rarely actual small businesses. Crossroads’ other evidence for Tester’s supposed habit of hiking taxes is the health care law, which won’t increase taxes for the majority of Americans.

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Crossroads GPS: “Holes”

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Crossroads GPS attempts to take Virginia Senate candidate Tim Kaine to task for both ‘soaring spending’ and ‘devastating’ cuts to spending on higher education during Kaine’s tenure as the state’s governor. But the budgetary reality of Kaine’s tenure was largely determined by the foibles of the global economy, which saw Kaine into office during a period of strength before enduring a massive recession that devastated state revenues and forced the governor and the legislature to make tough decisions about cuts. Ultimately, Kaine balanced every budget during his tenure.

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Crossroads GPS: “People Over Government”

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Crossroads GPS is attacking Sen. Claire McCaskill (D-MO) over taxes, attempting to cast her support for ending the Bush tax cuts for the wealthiest Americans as a determination to increase taxes on small businesses. But what McCaskill has actually “voted repeatedly” to do is to cut everyone’s taxes on their first $200,000 of income, and to revert to Clinton-era rates on the 1.4 percent of Americans who earn enough to benefit from the top-end Bush tax cuts. In addition to the standard conservative conflation of rich people and small businesses, the GPS ad misleads about the tax impact of health care reform, and implies that it’s McCaskill, and not a massive global economic crisis, that’s hurt Missouri’s manufacturers.

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Americans For Prosperity: “A One Term Proposition”

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An ad from Americans for Prosperity features a flurry of TV news clips about rising debt in the past few years and connects them to President Obama’s statement in February 2009 that “If I don’t have this done in three years, then there’s going to be a one-term proposition.” However, recent deficits have been fueled by Bush policies and the recession, and the ad takes the president’s words completely out of context. In fact, Obama was talking about whether efforts to rescue the economy would lead to economic progress. Since that interview, massive monthly job losses have turned into steady private-sector growth, including 4.5 million new private-sector jobs in the last 29 months.

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What Americans Lose If Conservatives Get Their Way On The Affordable Care Act

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After several failed attempts to repeal or defund the Affordable Care Act, conservative candidates are persisting in making the destruction of the landmark health care reform law a campaign issue, with many promising to do away with the law come 2013. But the benefits in the law are already kicking in, and repealing the law would affect millions of Americans who are already seeing lower health care costs, better services, and protection against industry abuses.

Repeal Would Kick Millions Off Their Insurance

Up To 30 Million Could Lose Coverage Gained As A Result Of The Affordable Care Act. From the Congressional Budget Office: “CBO and JCT now estimate that the ACA, in comparison with prior law before the enactment of the ACA, will reduce the number of nonelderly people without health insurance coverage by 14 million in 2014 and by 29 million or 30 million in the latter part of the coming decade, leaving 30 million nonelderly residents uninsured by the end of the period.” [CBO.gov, July 2012]

Up To 6.6 Million Young Adults Would Lose Health Care Coverage Through Their Parents’ Plans. From the Los Angeles Times: “President Obama’s healthcare law helped as many as 6.6 million young adults stay on or get on their parents’ health plans in the first year and a half after the law was signed, a new survey indicates. […] Earlier surveys by the federal government found that the number of people ages 19 to 25 without insurance declined after the law was signed, reversing years of erosion in health coverage for young adults.” [Los Angeles Times, 6/8/12]

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Unequal America: The Facts About Income Inequality And Economic Mobility

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The American economic pie may have increased in size, but 95 percent of Americans are getting a smaller slice than in the past. This is partly because the top 1 percent of the country has nearly quadrupled the size of its own helping. Their nearly 300 percent increase in take-home pay over that time dwarfs the more modest progress of the rest. Furthermore, while conservatives allege that progressives seek equal outcomes for all, at the cost of American economic freedom, the fact is our storied “equality of opportunity” is overstated. Economic mobility is scarce in the U.S. compared to other advanced economies, and most born into wealth or poverty stay more or less where they started.

Earnings Have Exploded For The Top 1 Percent, While Everyone Else Has Seen Much More Modest Growth

Economic Boom Following World War II Saw Income Gains “Distributed Rapidly Across Income Classes.” From the Economic Policy Institute’s State of Working America: “Between 1947 and 1973, economic growth was both rapid and distributed equally across income classes. The poorest 20% of families saw growth at least as fast as the richest 20% of families, and everybody in between experienced similar rates of income growth. Since then, growth in average living standards has unambiguously slowed. Between 1973 and 1995, growth in productivity, or how much income can be generated in each hour of work, collapsed to less than half the rate that characterized the previous quarter century.” [The State Of Working America, accessed 3/7/12]

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The Truth About Tax Cuts For The Rich, Deregulation, And Job Creation

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Despite demanding immediate deficit reduction in a difficult economy, conservatives insist that any increase in tax rates for top income earners will kill jobs. Instead, they argue for lowering tax rates on the wealthiest Americans (while downplaying the deficit impact of such a tax cut) as way to increase hiring. There is no evidence for this argument, however intuitive it may seem. Lower tax rates on the rich are not associated with more hiring or stonger GDP growth, and while conservatives insist that top income tax rates hit small businesses heavily, their ludicrous definition of “small business” renders that statement meaningless. Along with the threat of higher taxes, conservatives insist that federal regulations are holding back job creation and have made loosening the rules a focus of their agenda. However, tax breaks for the wealthy and deregulation do almost nothing to increase consumer demand, which is the true driver of hiring and expansion decisions.

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Crossroads GPS: “News”

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Crossroads GPS attacks President Obama’s economic record with a clip of a CBS News report stating that “this is the worst economic recovery America has ever had.” Blaming the president for high unemployment, the ad fails to acknowledge the severity of the Bush recession, which caused the economy to continue to shed hundreds of thousands of jobs in the first months of the Obama administration, and the GOP-favored public-sector downsizing that’s led to government layoffs. Far from ‘failing,’ the Recovery Act helped avert an even more severe economic collapse.

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Rep. Paul Ryan’s Severely Conservative Budget Benefits The Rich At The Expense Of The Vulnerable

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Those familiar with House Budget Committee Chairman Paul Ryan’s (R-WI) last budget proposal won’t be shocked at this year’s updated “Path to Prosperity,” a fiscal plan for 2013 and beyond that pledges policy prescriptions for “safeguarding America from the perils of debt, doubt and decline.” Like the old version of the “Path,” Ryan’s second attempt at engineering fiscal policy – including recommendations for overhauling the tax code, cutting spending, and reforming Medicare and Medicaid – takes an axe to federal spending that benefits those without political or economic power but showers tax breaks on the wealthy. With its absence of reasonable solutions for lowering debt and its far-fetched proposals to shift the country’s fiscal burdens onto the poor and middle class, the latest Ryan plan is at heart the same as the old one: A blueprint not for stabilizing the country’s fiscal situation but for forcing an ultra-conservative vision on the federal government.

Ryan Plan’s Cuts Are Enormous, Unrealistic, And Wouldn’t Balance The Budget Until 2040

The New Ryan Plan Proposes Even Larger Deficit Cuts Than Last Year’s GOP Budget. From the Associated Press: “This year’s GOP measure would produce deficit estimates that are significantly lower than a comparable measure passed by the House a year ago, claiming deficit cuts totaling $3.3 trillion – spending cuts of $5.3 trillion tempered by $2 trillion in lower taxes – below Obama over the coming decade. The deficit in 2015, for example, would drop to about $300 billion from $1.2 trillion for the current budget year. Last year’s GOP draft called for a 2015 deficit more than $100 billion higher.” [Associated Press via HuffingtonPost.com, 3/20/12]

The New Ryan Budget Cuts Spending By $100 Billion From This Year To Next. From the Associated Press: “The measure would cut spending from $3.6 trillion this year to the $3.5 trillion range in 2013 and freeze it at that level for two more years.” [Associated Press via HuffingtonPost.com, 3/20/12]

The New Ryan Budget Cuts Spending By $5 Trillion Over The Next Ten Years. From Bloomberg: “House Budget Committee Chairman Paul Ryan today proposed reducing spending by $5 trillion over the next decade from the U.S. budget with Medicaid, food stamps, Pell college tuition grants and other programs facing reductions.” [Bloomberg, 3/20/12]

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