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Neil Cavuto Worried Working Class Families Will Get A Break

Reported by Guest Blogger - September 8, 2009 -

Reported by Brian

On Thursday's (9/3/09) Your World, Neil Cavuto repeatedly complained to Democratic strategist Taylor West that President Obama giving $85 billion in tax breaks to low and middle income families was somehow letting them get away without paying their “fair share.” As West noted, it was laughable hypocrisy for Cavuto to be attacking Obama’s tax rebates for working class families as unfair after years of Bush tax cuts for wealthy Americans. Cavuto claimed the difference was between a tax cut and a tax rebate. But as West noted, why not give stimulus to those who need it most and who will more likely spend it? West did an excellent job of holding her own. With video.

West said, "We're talking about the child tax credit and the earned income tax credit, both of which go to people and families who are working full time for a living and scraping by to support their families. So we’re not exactly talking about handouts.”

Cavuto was stuck on the notion that working class people were getting something rich people weren't (funny how you never see him worrying when the shoe is on the other foot with rich people getting, say, better health care while working people suffer). "I'm just saying that they don't pay taxes, and they're getting tax money back."

"If you look at what we've seen over the last eight years, where we've given hundreds of billions of dollars in tax handouts to the wealthiest 1% of Americans, I think it's a little disingenuous to be outraged over tax breaks for working people," West said.

Cavuto said, without a bit of irony, "I'm not here to play class warfare."

"This is an extension of the tax credit that's going to working and low income families," West repeated.

Cavuto took another tack. "We apparently don’t eve have a way to pay for this… We just keep coming up with new math."

West countered, "I think it’s important to understand that this isn’t just about helping these working families. This is actually one of the most effective ways that we can stimulate the economy,."

"How do you know?" Cavuto asked.

"By putting extra dollars in the hands of families who are living paycheck to paycheck," West replied.

It’s hard to believe Cavuto didn’t know that already. A February, 2009 article about the stimulus package on Foxnews.com states: "People who are incredibly cash-strapped are going to be spending what they get right away," said Josh Bivens, an economist at the Economic Policy Institute. "These are people who go paycheck-to-paycheck, so it goes right back into the economy." The same article also noted about the stimulus package’s unemployment benefits, food stamp increases and a one-time payment to Social Security beneficiaries, “These kinds of cash injections are considered high ‘bang for the buck’ payments, since the recipients are unlikely to put the money in savings.” It’s not hard to see that the same would be true for tax credits for working class families.

Cavuto asked, "When has a tax credit ever stimulated the economy on a significant basis? …Tax credits...generally are short lived, nicotine type events… Should you consider something more sustaining in everyone's tax rates?"

West said, "These are the families for which this will have the greatest impact. They're going to immediately be able to use this money."

Comment: In Fox world, the only people who deserve a break are the rich.