Austin Goolsbee Breaks Down The “Tax Cut” Issue–Incorrectly, of Course

In case you missed it, Austin Goolsbee, Council of Economic Advisors Chairman for the White House, breaks down, “real simple” (also in a totally incorrect–and deceiving–way) an economics lesson on the White House website–a wonderful source of misinformation (dare I call them lies, as Governor Rendell has accused of Tea Partiers?)

In the video, Goolsbee suggests that “giving money to those making over $200,000 is expensive.”

First, let’s be clear: The money isn’t the government’s to give. The government doesn’t have any money–except what it takes from the citizens. People earned this money–not the government. It is owned by the person who earned it.  It is NOT the government’s money, regardless of what those in the White House might think. I particularly like how he says we “get” to keep the tax cut. Lucky us.

Secondly, the government wouldn’t be “giving” money to people earning over $200,000 if the Bush tax cuts were extended.  The government just wouldn’t be raising the tax rate higher than it already is.

In addition, extending the Bush tax cuts wouldn’t “cost” $700 billion. It wouldn’t “cost” anything, since you can’t spend money you don’t have. If the tax cuts expired, the $700 billion in additional taxes would be a boon to the government, but not getting the $700 just means they don’t have that money to throw away on some worthless project. It wouldn’t cost them a thing, just as not getting a bonus at work (while disappointing) wouldn’t cost you anything either. Only in Washington do they think that not getting more of your money than they already get is a “cost.”

Goolsbee also says that all objective (I have a feeling that objective doesn’t mean the same thing in Obamaland that it does in the rest of the country) economists agree that tax cuts for the “very high earners” are the least effective thing that can be done to improve the economy.

Huh. I doubt that the money spent on studying ants or tossed away on GM and bailing out the banks was at all effective.

And the fact is, they weren’t. But having those who create jobs (and whether you like it or not, the wealthy do create jobs. Many are small business owners, but even if they aren’t, they shop. They hire housekeepers. They hire gardeners. They eat out. They travel and stay in hotels. They buy boats and vacation houses and iPads and cars. They stimulate the economy so that those they hire and whose goods they buy have money to stimulate the economy too. Can an ant study or GM bailout do that?

The White House and Democrats have been spreading “misinformation” (dare I call it a lie?) that the “rich” don’t pay their “fare share” for a while now. But that isn’t true. The top 5% already pay more than half of all income taxes. (See Guess Who Really Pays the Taxes by Stephen Moore in The American. We also discuss this in Patrick Murphy, Get a Clue.)

Perhaps if Goolsbee had actually ever had a REAL JOB, or had ever actually RUN A BUSINESS, he might understand how ridiculous his claims in this video are.




2 Responses to “Austin Goolsbee Breaks Down The “Tax Cut” Issue–Incorrectly, of Course”

  1. Patrick Thompson Says:

    What’s not expensive about spending 700 billion dollars, on a 3% tax cut for our wealthiest?

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