Blog ››› ››› ALEX MORASH
Fox & Friends berated Democratic presidential nominee Hillary Clinton for her tax and economic policy agenda, arguing it wouldn’t do enough to curtail future spending, while giving Republican nominee Donald Trump a pass for his supposed pro-growth tax cuts that are projected to explode the national debt over the next decade.
Fox Business host Stuart Varney joined the cast of Fox & Friends on October 21 to attack Clinton for claiming during the final presidential debate that her tax plan “will not add a penny to the debt.” Varney contended that Clinton’s statement was false because current federal spending is on track to accumulate roughly $9 trillion in debt over the next decade. During his critique, which cited the Committee for a Responsible Federal Budget (CRFB) as its source on screen, Varney neglected to mention that, according to the CRFB, Clinton’s tax and spending plans would only add about $200 billion in new debt accumulation to the $9 trillion already baked into continuing federal spending. After accounting for the roughly $275 billion of new revenue that Clinton estimates her proposed business tax reforms will generate, her proposals are more or less balanced.
Even though Varney seems to be a deficit scold, when Fox & Friends co-host Ainsley Earhardt asked him which candidate had the better economic plan, Varney chose Trump’s plan, which the CRFB projects would add $5.3 trillion to the national debt on top of current spending. When CRFB compared the two plans side by side, Clinton’s left projected debt levels virtually unchanged while Trump’s contribution resulted in a doubling of the national debt over the next decade:
Varney claimed Trump’s budget-busting plan would be better for the economy because of the debunked trickle-down economic “theory” that lowering taxes in the way Trump has proposed will generate 4 percent economic growth annually. Co-host Pete Hegseth agreed with Varney, claiming that tax cuts for the rich creating economic activity nationwide “has played out in reality in the past” as Varney cited the Reagan tax cuts of the 1980s and the Bush tax cuts of 2001 as examples.
Varney’s misleading claim that previous tax cuts instituted by Republican presidents have led to increased economic growth has been a central theme of his repeated appearances on Fox & Friends. On October 11, Varney appeared on the show and claimed that Trump’s plan would get the American economy to “4 percent growth within a couple of years.” He admitted that the plan would “initially” increase the federal deficit before speculating that “over the longer term, the deficit, I think, comes down.” Varney also appeared on September 28 when he defended Trump’s tax cuts for the rich and claimed a huge tax cut for the wealthiest Americans is “how we grow the economy.”
The assertion that the Reagan tax cuts of 1981 and the Bush tax cuts of 2001 created an economic boom is unsubstantiated by the facts. According to The Washington Post, the Bush tax cuts increased the deficit and income inequality, and, according to a review by CBS News, they did not positively impact economic growth. Economist Austan Goolsbee stated as much on the October 20 edition of Fox News' Happening Now, arguing that the Bush tax cuts “didn't get growth” that was promised and that Trump proposing an even larger tax cut “makes no sense.” The Reagan tax cuts did no better; PolitiFact rated claims that the Reagan tax cuts led to “exponential growth” as “mostly false,” and Nobel Prize-winning economist Paul Krugman labeled the Reagan tax cuts “a one-hit wonder” where “the rich got much richer” while there was also an increase in poverty.
According to a September 2014 report from the Brookings Institution, tax cuts do not always create economic growth and can even discourage growth by undermining economic incentives to invest. A September 2012 report by the Congressional Research Service (CRS) similarly concluded that reducing top income tax rates does not correlate with increased economic growth, but lowering top rates does "appear to be associated with the increasing concentration of income at the top of the income distribution."
Right-wing media consistently attack Democratic politicians for their supposedly irresponsible approach to deficit spending, while ignoring Republican tax plans that would explode deficits by an even greater amount. This kind of misleading equivalency was even a feature of Fox News host Chris Wallace’s questioning during the October 19 presidential debate. The fact remains that if right-wing media really care about the debt and deficit, they have to start caring about the budget-busting tax plans pushed by conservative politicians.
Watch the full segment from Fox & Friends here: