What a coincidence that as Donald Trump is talking about how he wants a “phase two” of tax cuts, so does Fox News.
On the Cavuto Live show Saturday, guest host Dagen McDowell led off her push for – er, discussion about - tax cuts with footage of apparently middle-class Americans raving about them. Somehow, she “forgot” to mention that other than the high earners, most people haven’t noticed any extra money in their paychecks.
Predictably, the first two panelists McDowell turned to were supporters. “Now is the time if you’re going to do this, to do this,” John Layfield said. “The deficits that we’re experiencing right now have nothing to do with these tax cuts … These deficits have to do with reckless politicians spending money like they’re drunken sailors. The tax cuts need to be made permanent, that’s a separate issue.”
Gary B. Smith “totally” agreed. “In fact, I think taxes should be even lower for a variety of reasons,” he said. “The government spends the money ineffectively, and it needs to go on a diet.”
Democrat Chuck Rocha seemed to be on board, too. He said, “We should make individual taxes lower for people. … We should make the individuals permanent.”
McDowell added her own support: “When you don’t know how to cut spending or at least rein it in in some way, then you’re your own worst enemy.”
Erin McPike was the lone voice of dissent. “There’s not a chance that this is going to happen this year, to throw some cold water all over it,” she said. She called the push, “just an election year gambit.”
“You have 90% of people who are going to see higher paychecks this year,” McDowell added. She failed to mention that 40% of those getting an increase will get $16.50 more in their bimonthly paychecks – or less.
“By many indicators, this is an economy that’s gaining steam, and we can thank in part those tax cuts,” McDowell cheered.
Actually, Trump has not done as much for the economy as he and his sycophants claim. Furthermore, as Bloomberg reported, last month’s budget deficit was the highest in six years. That has prompted concerns among “some economists that Republican tax cuts enacted this year could increase the U.S. government debt load, which has surpassed $20 trillion.” Also, according to Bloomberg, federal revenue is expected to further drop “by more than $1 trillion over the next decade, while a $300 billion spending deal reached by Congress in February could push the deficit higher.”
None of that was mentioned by the panel.
Watch the propaganda below, from the March 17, 2018 Cavuto Live (with apologies for the video quality).
(Correction: This post originally said it had been authored by Ellen)
My bad, Brian!
“You have 90% of people who are going to see higher paychecks this year,” McDowell added. She failed to mention that 40% of those getting an increase will get $16.50 more in their bimonthly paychecks – or less."
And here’s another IRREFUTABLE FACT that Dagen McDowell will NEVER, EVER mention: the VERY PUNY AMOUNT of $ working class Americans are now seeing in their paychecks will be INSTANTLY WIPED OUT — and then some more — when the following items start SKYROCKETING INTO OUTER SPACE:
Health insurance premiums
FICA taxes (i.e. Social Security taxes)
State income taxes, city income taxes and local property taxes [keep in mind: blue state residents (including me) will REALLY, REALLY GET HAMMERED BIG TIME now that their state taxes and local property tax deductions are getting capped at $10,000]
Sales taxes
Gasoline taxes (keep in mind: Fuehrer Twitler has already proposed A COLOSSAL 25 CENT/GAL. HIKE in the federal gasoline tax)
Excise taxes
Utility bill taxes
Cell phone bill taxes
College tuition (i.e. at state run schools)
Usage fees (e.g. auto and boat licensing & registration fees, permit fees, highway, tunnel and bridge tolls [keep in mind, Indiana drivers who have to use I-80 & 90 on a daily basis just got SOCKED IN THE KISSER by another HUGE TOLL HIKE due to the fact that I-80 & 90 (i.e. the major east-west interstate highway in northern indiana) GOT PRIVATIZED back in 2006], parking fees, mass transit fares, etc.)
Always remember Universal Tax Rule #1 from the Pulitzer Prize winning authors Donald Barlett, James Steele and David Cay Johnston: no matter how you slice it, when rich individuals and big multinational corporations don’t pay taxes or pay less than their fair share, WORKING CLASS AMERICANS ALWAYS GET STUCK MAKING UP THE DIFFERENCE IN THE END!
For those of us living and working as employees in Blue States, the tax increase is massive. I’m seeing 200 dollars less per week in my paychecks as a result of this law. I expect to lose up to 10K per year in income due to the loss of nearly all of my deductions. Of course, if I were a business owner or a corporation or an independent contractor, I could continue to enjoy my deductions. It’s because I’m a guild member and a union employee that I now may enjoy the fun of handing 40K of my retirement savings over to massive corporations and wealthy donors to the GOP. It’s not an accident that the Republicans deliberately targeted union employees in Blue States for big increases. Tucker Carlson has effectively admitted to this on his own show.
The one basic hope I have to stop some of the damage is found in the lawsuits filed by multiple Blue States over the double taxation issue – when the law capped State & Local deductions at the low end, it also instituted defacto double taxation on Blue State residents. Because we don’t see that income in any case, and yet we’re now taxed on it. Up to December 2017, every federal tax law passed has acknowledged that we didn’t want to get into double taxation. The new law actually encourages double taxation – so long as it’s for the people the GOP dislikes.
But I wouldn’t call this scenario “tax cuts”. Not unless you’re earning at least 500K per year or have a net worth clearing 50 billion dollars.
The Laffer Curve is nothing but an Econ 101 elasticity of demand curve applied to taxes. And any Econ 101 student (I was one once) understands there’s an inflexion point where taxes no longer bring in more revenue than they cost. If this weren’t true, we could cut taxes to zero and watch the revenue roll in! 🤣
The Fox News talking point the problem is the government is spending too much money is true to the point Congress – both Republicans and Democrats – are addicted to deficit spending. However, the critical point the panel ignores is supply side economics supposes this tax cut will pay for itself and it isn’t.
The panel doing a diaper fill over government spending is hypocritical given Fox News has been pounding the drum since the Obama administration years when a budget compromise reigned in Pentagon spending. They’ve been hysterical ever since screaming our military was gutted. Fully in control of the purse strings, it’s no surprise Republicans pushed for a re-bloating of the Defense Department. It is so bad the GOP threw many billions of dollars at the Pentagon over and above what they requested.
Gary B’s anti-Socialism rant explains this. Spending to alleviate poverty in America is the main culprit. His straw man is liberals envision a world where money is redistributed to the point everyone earns the same. Seriously? Show me 1 Democrat in Congress who advocates this.
A final note. ‘Liberal’ Chuck is a complete joke in this segment.