A few days ago I read an article by Paul Krugman (Remember him? Nobel economist?), the title of which is - no joke:
Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies
The aticle was about the ten selling points the Republicans are (and have been for years) using to sell their snake oil cure-all, "Tax Cuts". The ten biggest lies in Mr. Krugman's article:
- America is the most highly-taxed country in the world. It's not. Not even close.
- The estate tax is destroying farmers and truckers. No way. It's likely that only 2-3 American truckers and NO farmers will pay any estate tax this year.
- Taxation of pass-through entities is a burden on small business. Not so with small buisinesses. Wealthy business owners pay business taxes in accordance with their overall income. Yo kno, progressively?
- Cutting profits taxes really benefits workers. So if you lower taxes on a business's profits, they will turn around and give all their workers raises? Under the workers' pillows like the tooth fairy? Or might they just return it to their owners (investors) as dividends?
- Repatriating overseas profits will create jobs. Wrong. Studies have sown that "repatriated" funds don't increase employment, investment or R&D.
- This is not a tax cut for the rich. Lie. Almost every provision of this proposal will benefit the very hiesg income Americans, with pennies tossed to the rest of us.
- It’s a big tax cut for the middle class. Valse. See above. 80% of the tax cut goes to the top 1%.
- It won’t increase the deficit. Another whopper. This is a multi-trillion dollar budget buster.
- Cutting taxes will jump-start rapid growth. Remember Reagan's Laffer Curve? Economists laugh at Laffer. Remember the Clinton tax hikes? They were followed by robust growth and, until Bush took over, actually were on track to eliminate the spending deficit.
- Tax cuts will pay for themselves. From Krugman's article: "Reagan’s tax cuts led to deficits, Clinton’s tax hike to surpluses; Jerry Brown presided over California’s fiscal revitalization, Sam Brownback over a fiscal crisis that eventually prompted the legislature to overrule him and raise taxes again."
The original article (may be pay-walled) is here.