Greg Sargent: Dem Talking Points Memo on Bush Tax Cuts

[flpoljunkie]

(Let's hear every Dem call the 2% small business tax cut Republican meme a 'Pants on Fire' lie! The Republicans would do no less. They know how to control and sell their message.)

Dem talking points memo on Bush tax cuts
Tax Cuts

* Middle Class Tax Cuts: 98 percent of Americans face a tax increase January 1. For the typical middle-class American family, that could mean the loss of $2,000 next year. Or if Republicans prevail--the middle class would be saddled with $700 billion in new debt to pay for multi-million dollar tax cuts for billionaires.

* American support eliminating tax cuts for millionaires: A new NBC/WSJ poll shows Americans favor the President's plan. 39 percent say eliminate the tax cuts for those earning more than $250,000 per year, but keep them for those earning less. 23 percent say keep in place the tax cuts for everyone permanently

The Tax Talking Point that's a "Pants on Fire" Lie

* Congressional Republicans claim letting the wealthiest 2 percent pay tax rates they paid in the booming 1990s would hurt small businesses. The nonpartisan Pulitzer Prize-winning PolitiFact labeled that claim a "Pants on Fire" lie. At least 97 percent of small businesses would not pay a penny more due to letting these upper-income tax rates expire for the wealthiest 2 percent of Americans.

*This analysis even overstates the impact on small businesses. Included in that small percentage of "small businesses" affected (2 percent-3 percent) that Congressional Republicans say they are trying to protect is anyone who receives any type of business or partnership income -including hedge fund managers, Price Waterhouse Coopers, athletes, authors, investment bankers, lobbyists, private equity fund managers, owners of large privately-held multinational companies, billionaires like George Soros, partners in major law firms and even President Obama himself.

*This Congress has enacted 16 tax cuts for America's small businesses -- $87 billion of tax cuts to spur investment, access to capital, new starts and hiring, and to afford health care. House Republicans voted AGAINST 15 of the 16 small business tax cuts, and have opposed closing overseas tax loopholes that cost American jobs.

By Greg Sargent
November 19, 2010

http://voices.washingtonpost.com/plum-line/dem-talking-points-memo-on-bus.html

[flpoljunkie]

1. Politifact: Distorting Dem Plans on Bush Tax Cuts

Distorting Democratic plans on the Bush tax cuts
By Angie Drobnic Holan
Published on Wednesday, August 4th, 2010

http://static.politifact.com.s3.amazonaws.com:80/rulings%2Ftom-pantsonfire.gif

Sarah Palin attacks the Democratic proposal on letting the Bush tax cuts expire for the wealthy.

In an appearance on Fox News Sunday, former Alaska governor Sarah Palin answered questions about extending the Bush tax cuts. She said Democrats are "poised now to cause this largest tax increase in U.S. history. It's a tax increase of $3.8 trillion over the next 10 years, and it will have an effect on every single American who pays an income tax."

The problem is, she's distorting the Democrats' proposals. They plan to raise taxes on the wealthiest tax payers, and it would not result in the largest tax increase in U.S. history. We rated Palin's statement Pants on Fire; read our complete report for details.

That $3.8 trillion -- the number she wrote on her hand -- is the cost over 10 years if all the Bush tax cuts expired. Democrats say they want to keep the tax cuts for individuals who make less than $200,000 and couples who make less than $250,000.

Palin isn't the only one distorting the Democratic proposals, though.

Rep. Randy Neugebauer, R-Texas, said that "94 percent of small businesses will face higher taxes under the Democrats' plan." This isn't even remotely true --even if the Democrats proposed letting tax cuts expire for all income levels, which they won't.

The actual percent of small businesses who will see a tax increase is more like 3 percent. Because he was so far off, we rated his statement Pants on Fire!

http://static.politifact.com.s3.amazonaws.com:80/rulings%2Ftom-pantsonfire.gif

http://politifact.com/truth-o-meter/article/2010/aug/04/distorting-democratic-plans-bush-tax-cuts/