Taxes

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  • The Worst Economist In The World Says Trump's Tax Cuts Will Do The Impossible

    Why Does CNN Even Give Stephen Moore A Platform?

    Blog ››› ››› ALEX MORASH

    In response to reports that President Donald Trump would unveil a plan to reduce the corporate income tax rate from 35 to 15 percent, discredited economic pundit Stephen Moore rushed to praise the budget busting corporate giveaway while misleadingly claiming that the tax cuts will help pay for themselves by boosting economic activity.

    On April 24, The Wall Street Journal reported that Trump would release a tax plan on Wednesday focused on cutting the maximum statutory corporate tax rate from 35 to 15 percent -- a 20 percent cut the White House is demanding regardless of the implications it would have for the federal budget deficit. The Journal also reported that Treasury Secretary Steve Mnuchin made the unfounded claim that the tax cut will “pay for itself with economic growth.”

    Economist Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities and who served as economic adviser to former Vice President Joe Biden, called the assertion that Trump’s tax cut would pay for itself “empirically phony” and argued that there is no correlation between cutting taxes and boosting economic growth. Nobel Prize-winning economist and New York Times columnist Paul Krugman derisively referred to Trump’s trickle-down economic agenda as “voodoo economics” and laid out examples of tax cuts failing to generate growth under previous administrations. Krugman also noted that former presidents Bill Clinton and Barack Obama both raised taxes in order to generate sustainable new tax revenues without undermining the growing economy. He concluded by saying that the extreme cuts Trump would propose is the same “voodoo” Republicans have promoted for decades “with extra bad math.”

    On April 25, the conservative-leaning Tax Foundation posted an analysis of the Trump administration’s claims that the tax cut would pay for itself, concluding that the economy could not grow enough to offset the losses in revenue. According to the Tax Foundation’s charitable analysis, cutting corporate tax rates to just 15 percent would stoke economic growth by less than half as much as would be needed to make up for lost revenue and result in long-term deficit increase of at least hundreds of billions of dollars. Those conclusions follow an earlier analysis of Trump’s corporate tax proposal by the nonpartisan Tax Policy Center, which on October 18 found that Trump’s corporate tax agenda alone would reduce federal revenue by $207.6 billion in 2018 and by roughly $2.4 trillion over ten years.

    The idea that tax cuts pay for themselves has been thoroughly debunked by years of research. Yet Moore heaped praise on Trump’s plan while parroting unfounded claims that it would grow the economy and benefit all Americans. On the April 25 edition of CNN’s New Day, Moore pushed Trump’s tax plan claiming it would create a “feedback effect” leading to growth. Moore also published an op-ed in The Wall Street Journal that day promoting the plan while claiming Trump’s tax agenda would help the American economy reach the arbitrary and unrealistic 3 percent annual growth target so-cherished by conservative pundits. On the April 26 edition of New Day, Moore continued his push for the tax cuts only to be debunked by economist and former Obama economic adviser Jason Furman, who reminded Moore that “this plan would actually hurt our economic growth” by adding trillions of dollars to the federal debt reducing long-term economic growth:

    Ever since CNN hired Moore, he has harmed the network’s credibility by spewing lies about the economy while peddling whatever policies are being pushed by the Trump administration. He routinely peddles partisan economic misinformation while being debunked by more reliable experts and his only purpose at the network seems to be recycling right-wing media talking points.

  • STUDY: Cable News’ Sporadic Coverage Of Trump's Hidden Tax Returns

    Nearly Half Of Cable News Discussion Of Trump Tax Returns Since Inauguration Occurred Within A Week Of Rachel Maddow’s Tax Exclusive

    ››› ››› JULIE ALDERMAN

    A Media Matters study found that between President Donald Trump’s January 20 inauguration and Tax Day, April 18, evening cable news has dedicated only sporadic coverage to Trump’s failure to release his tax returns. And of the 110 segments spread out over three months, nearly half came within a week after MSNBC’s Rachel Maddow revealed two leaked pages of Trump’s 2005 tax documents. This inconsistent coverage comes as pressure mounts from activists and Republican lawmakers for the president to release his tax returns, and highlights the media’s inability to consistently report on this story.

  • Fox Echoes Trump’s Attacks On Tax March: “The Election Is Over!”

    Trump Apologists Cannot Understand Why Protests Aimed At Trump’s Tax Returns Would Coincide With Tax Day

    Blog ››› ››› ALEX MORASH

    Fox News echoed the insults and attacks President Donald Trump leveled against tens of thousands of Americans that took part in over 180 rallies and events in 48 states over the weekend in protest of the president’s refusal to disclose his tax returns.

    On April 15, the day that federal tax returns are typically due to be filed, organizers in Washington, D.C. and across the country led Tax March demonstrations in protest of Trump’s refusal to release his tax returns to the public. Trump attacked the protestors in a series of tweets the following day, complaining that his “tax returns are being brought up again,” diminishing the nationwide demonstrations as “small organized rallies,” and suggesting that demonstrators were paid to oppose him. Trump concluded by exclaiming “the election is over!”

    Taking their cue from Trump, Fox News media personalities proceeded to blast the Tax March. On the April 17 edition of Happening Now, co-host Jenna Lee questioned “the timing of this” and wondered if the protests were a distraction given “everything that’s going on in the world.” Guest Adam Goodman, a Republican strategist, agreed with her assessment adding that “for many, as I think you can now see, the campaign isn’t over, it’s never over.”

    The April 17 edition of Fox’s Outnumbered led its segment bashing the protesters by displaying Trump’s tweet calling for the protestors to be “looked into” and co-host Meghan McCain deflected criticism of Trump’s unprecedented refusal to disclose his tax information because he was not legally required to release it. Guest Guy Benson, political editor of Townhall, complained that the Tax March and other protests against Trump’s presidency made him feel “fatigue,” and wondered “why this issue, why a giant protest now?” Later that evening, on Fox Business’ Kennedy, host Lisa Kennedy Montgomery piled on the criticism, calling the protesters “a collection of free wheeling leftists” who are “bored” with the Trump administration and disgruntled Clinton supporters who have not gotten over the election.

    Fox continued to mock the protesters and playdown the importance of Trump releasing his tax returns into the following day. On the April 18 edition of Fox & Friends, Fox contributor and the Trump campaign’s deputy campaign manager, David Bossie, falsely claimed “the American people don’t care” if Trump discloses his tax returns and that the marchers were “paid professional protesters.” Later that morning, on Fox Business’ Varney & Co., Fox News senior judicial analyst Andrew Napolitano acknowledged Trump’s taxes were an important issue during the campaign but reiterated Trump’s talking point that “the campaign is over” and “this is no longer relevant.” Host Stuart Varney, however, admitted that the tax returns might reveal Trump could make “enormous” gains from the tax cuts he campaigned on.

    While Trump’s devotees and apologists at Fox regurgitated his rhetoric, investigative reporter and tax specialist David Cay Johnston -- who had previously obtained a copy of Trump’s 2005 tax returns -- explained on the April 18 edition of MSNBC’s MSNBC Live that complete tax disclosure remains important in rooting out conflicts of interest and understanding how much Trump would benefit from his tax agenda:

    Fox News defended Trump hiding his tax returns throughout the 2016 election season and seems poised to continue. The network has repeatedly held Trump to a different standard than other presidents and politicians.

  • With Tax March Looming, Watch Fox’s Absurd Defense Of Trump Hiding His Tax Returns

    ››› ››› ALEX MORASH

    Donald Trump broke with decades of precedent in 2016 by refusing to release his tax returns in the midst of his presidential campaign, a stubborn refusal he has maintained since taking office in January. On April 15, the day tax filings are traditionally due, Americans will march in over 100 cities around the country to demand that the president fully disclose his tax and financial records. Before the Tax March, take a look at some attempts by Trump's team of Fox News sycophants to defend his unprecedented refusal to disclose his tax returns.

  • Journalists, Experts Agree Trump's Tax Reform Agenda Will Be Even Harder Than Repealing Obamacare

    ››› ››› ALEX MORASH & CRAIG HARRINGTON

    After President Donald Trump and Speaker of the House Paul Ryan (R-WI) failed to garner enough support to pass legislation that would repeal and replace the Affordable Care Act (ACA), Trump declared he had moved on to refocus his legislative priorities on tax reform. In light of Trump’s inability to get the Republican-led Congress to vote with him on health care changes, which had been a major campaign promise of virtually every elected GOP official, journalists and experts are beginning to question if Trump is capable of wrangling his caucus to tackle substantive conservative tax reform proposals that have been stagnant for decades.

  • Will Fox News Finally Take The Debt Ceiling Seriously?

    Fox Spent Years Urging Republicans To Default On The National Debt To Hurt President Obama

    ››› ››› CRAIG HARRINGTON & ALEX MORASH

    Since Republicans took control of the House of Representatives in 2011, Fox News personalities have urged them to use the threat of defaulting on the sovereign debt obligations of the United States government as a means of winning political concessions. With Republicans now in full control of Congress, will the talking heads at Fox finally come to terms with this monumental threat to the global economy and urge the GOP to raise the debt ceiling?

  • Experts And Media Observers Stunned By Trump’s Budget Proposal

    ››› ››› CRAIG HARRINGTON

    Economic policy experts, advocacy groups, and media outlets scrambled to respond to President Donald Trump’s budget proposal for the 2018 fiscal year, which includes $54 billion in new defense spending to be offset by dramatic cuts to the entire non-defense discretionary budget. Many observers were quick to point out that the president’s so-called “America First” budget will worsen the suffering of at-risk communities, including many low-income regions that supported his election and are kept afloat economically by federal spending programs.

  • Will Fox Continue Its CBO Smear Campaign With More White House Talking Points?

    Fox News Spent Days Attempting To Discredit The CBO In Advance Of Its Report Outlining That Millions Will Lose Health Insurance Under GOP Plan

    Blog ››› ››› ALEX MORASH

    Fox News pushed White House talking points attacking the Congressional Budget Office (CBO) in an attempt to discredit the nonpartisan scorekeeper before it released today’s report projecting the effects of the Republican plan to repeal Obamacare -- the American Health Care Act (AHCA). The report’s devastating findings -- that up to 24 million people would lose their health insurance coverage over the next decade under the GOP health care plan -- are now public. Will Fox News continue to borrow White House talking points to carry water for the disastrous plan?

    On March 13, the CBO reported that the number of Americans without health insurance would grow to a staggering 52 million people by 2026 under the GOP’s health care plan, AHCA, compared to an estimated 28 million who are projected to remain uninsured under current law. President Donald Trump’s administration and Republican leaders in Congress had tried to smear the CBO -- the nonpartisan research arm of Congress tasked with analysing the budgetary and economic impacts of legislative proposals -- in advance of the widely anticipated report, which many correctly predicted would find that the GOP plan will throw millions off their health insurance.

    White House officials began a campaign to discredit the CBO on March 8 when during a press briefing White House press secretary -- and renowned liar -- Sean Spicer questioned the work of the nonpartisan researchers at CBO, telling reporters that “if you're looking at the CBO for accuracy, you're looking in the wrong place.” This was an about-face from what the director of the Office of Management and Budget (OMB), Mick Mulvaney, stated on MSNBC’s Morning Joe earlier that day when he claimed “the only question” on the CBO scoring was whether it will it be “really good” or “great” for the Trump administration. Despite his initial optimism, Mulvaney too joined in on attacking the CBO on the March 12 edition of ABC’s This Week, downplaying the effectiveness of the office’s analysis and misleadingly claiming that the agency did not score the Affordable Care Act (ACA) -- also called Obamacare -- accurately. Secretary of Health and Human Services, Tom Price, also blasted the CBO on the March 12 edition of NBC’s Meet The Press.

    In the hours leading up to the CBO’s March 13 report release, Fox News figures attempted to discredit the organization with talking points straight from the Trump administration. Co-host Brian Kilmeade claimed on Fox and Friends that the CBO was tricked into scoring the ACA inaccurately because it did not score the mandate as a tax, adding that the CBO fell “hook, line, and sinker” for some sort of Democratic plan to bring about single-payer health care. On America’s Newsroom, Washington Examiner columnist Byron York claimed the Trump administration’s allegation that CBO had inaccurately scored the ACA years ago was “absolutely true.” On Outnumbered, co-host Melissa Francis claimed “the CBO does get everything wrong” and complained that the CBO underestimated the cost of Medicaid expansion under the ACA. On Fox Business’ Varney & Co., host Stuart Varney’s anti-CBO talking points were rebuffed by Harvard economist and former CBO director Douglas Elmendorf, who pointed out that the office correctly predicted that the number of uninsured would fall under ACA, it accurately projected premium increases under the law, and it actually overestimated the long-term cost of enacting Obamacare.

    As soon as the CBO’s devastating report on the short- and long-term effects of repealing Obamacare and enacting the AHCA was released this afternoon, Fox News turned to discredited New York Post columnist, former Trump economic adviser, and serial health care misinformer Betsy McCaughey to double down on its campaign against the CBO. McCaughey slammed the report as “implausible” for finding that tens of millions would lose health insurance coverage under the Republican health care plan, but happily accepted the same report’s finding of marginal deficit reductions stemming from the repeal of health insurance subsidies to low-income Americans. From the March 13 edition of Fox’s Your World with Neil Cavuto:

    According to an independent analysis of the CBO’s Affordable Care Act estimates from the Commonwealth Fund, the office’s health care policy analysis regarding the ACA actually “proved to be reasonably accurate” and was thrown off by Supreme Court decisions and GOP political obstruction that it had no way to forecast. Even James Capretta of the conservative American Enterprise Institute warned that it may “tempting for GOP leaders to say CBO is wrong” but it would be difficult to “make a credible case” that the repeal plan would not reduce the number of people with health insurance.

  • STUDY: Cable And Broadcast Coverage Of The Economy Spiked After The Election

    Representation Of Economists Remained High In Fourth Quarter As Surprising Election Result Forced Outlets To Scramble For Explanations

    ››› ››› ALEX MORASH & CRAIG HARRINGTON

    The final quarter of 2016 saw an increase in cable and broadcast news coverage of the economy from the prior three-month period. Yet the proportion of economic coverage that focused on economic inequality decreased sharply as attacks on progressive economic policies rose. Fox News led the charge in attacking progressive policies and health care reform throughout the fourth quarter of the year, while the leading defender of progressive initiatives, MSNBC, aired most of its economic coverage after Election Day. The relative proportion of economists booked as guests during economic news segments remained higher than in years past but dropped as a percentage from the third to fourth quarters of 2016. The proportional representation of women in cable and broadcast evening news discussions of the economy reached a record, but dispiriting, high in the fourth quarter at a mere 30 percent of all guests.