Liberal Tax Myths!

The following is a list of the 10 largest liberal myths on taxes. I will first give you the myth, and then follow it up with fact. So drum roll please........

Myth 10: Bush tax cuts were tilted toward the "Rich".

Fact 10: The rich are shouldering more of the nations tax burden than ever. (39% of taxes are paid by the top 1% of income earners, and 86% of all taxes are paid by the top 25% of income earners.) Thats up 2-4% from 2000 when Bush took office.

Myth 9: Bush tax cuts have not helped the economy.

Fact 9: Economy responded by creating more jobs (lowest unemployment since 1970.) Very simple more jobs means more money.

Myth 8: Tax cuts help the economy by “putting money in people’s pockets.”

Fact 8: Pro-growth tax cuts support incentives for productive behavior.

Myth 7: Reversing the upper-income tax cuts would raise substantial revenues.

Fact 7: The low-income tax cuts reduced revenues the most.

Myth 6: Raising tax rates is the best way to raise revenue.

Fact 6: Tax revenues correlate with economic growth, not tax rates.

Myth 5: The Bush tax cuts are to blame for the projected long-term budget deficits.

Fact 5: Projections show that entitlement costs will dwarf the projected large revenue increases.

Myth 4: Capital gains tax cuts do not pay for themselves.

Fact 4: Capital gains tax revenues doubled following the 2003 tax cut.

Myth 3: Supply-side economics assumes that all tax cuts immediately pay for themselves.

Fact 3: It assumes replenishment of some but not necessarily all lost revenues.

Myth 2: The Bush tax cuts substantially reduced 2006 revenues and expanded the budget deficit.

Fact 2: Nearly all of the 2006 budget deficit resulted from additional spending above the baseline, where revenues were projected to be without the tax cuts.

Myth 1: Tax revenues remain low.

Fact 1: Tax revenues are above the historical average, even after the tax cuts.