Hikes Good; Tax Cuts Bad
The number one truism of the media: Tax hikes good; tax cuts bad. The latest evidence:
3) Once Dole had outlined his plan CNN brought on Susan Dentzer of U.S. News & World Report to discuss it and NBC Nightly News asked reporter Mike Jensen about it -- both denounced it and relayed a false history of Reaganomics. NBC's Mike Jensen: Economists "say say these tax cuts could cause huge budget deficits as they did during the Reagan years."
For the Friday, August 2 CBS Evening News, Ray Brady reviewed Clinton's
economic record. As transcribed by our staff back in Virginia, here's the
second half of his story:
Ken Bode, CNN's political analyst, offered his opinion of tax cuts as he moderated Washington Week in Review on July 26: "Americans might remember that the last time we tried to grow our way out of the deficit, that the tax cut happened, the growth didn't happen and the deficit was huge at the end of it. How are they going to explain this new version of supply side?"
Headline in the August 5 USA Today: "Dole's Tax Plan Could Backfire, Experts Say: Deficits, interest rates could rise."
Minutes after Dole completed his speech in Chicago on Monday, CNN
interviewed Susan Dentzer of U.S. News and World Report. She's no fan of
tax cuts or of those who would like one: "I think it's going to sell
very well among those who, for one thing, think that government is taxing
them too heavily and don't have a calculator, don't particularly care
about the details of federal fiscal policy and don't particularly want to
add up the dimensions of the problem or stare into the future that we know
we face. We know that the future fiscal situation for whoever is
president, come January, is going to be getting worse not getting better.
A lot of people are not necessarily aware of it, but it's very clear that
if we stay on our current path, the budget deficit widens, it doesn't get
narrower, and the notion that in that kind of environment we could pass a
very large tax cut, strains all kinds of credibility. Nonetheless, there a
lot of people who don't want to hear that, they want to see the government
shrunk, they want to believe they can get a tax cut and everything will be
Nightly News Monday night reporter David Bloom declared: "Most
economists say the Reagan tax cuts did worsen the budget deficit and many
are skeptical of Dole's plan." As transcribed here in San Diego by
MRC analyst Steve Kaminski, NBC's Mike Jensen concluded the subsequent
piece by looking at what economists think: "They say these tax cuts
could cause huge budget deficits as they did during the Reagan years, debt
that would have to be paid off by future generations. Brian."
Here's a brief reality check, from Ed Rubenstein in his Right Data book: "Since 1980, aggregate federal tax revenues have grown 111 percent. Had revenues grown at the rate of inflation, the government would have collected $225 billion fewer dollars in 1992. Congress spent the additional money, and then some....The Republican record 1980-92: Social welfare spending rose 44 percent. Defense spending rose 30 percent."
If the media weren't so biased Steve, Gene Eliasen and I would be off to the beach. -- Brent Baker