In the comments yesterday, Heritage member Robert Orsino asked us to help him respond to liberal misinformation from groups like MoveOn.org:
The latest being wide spread is against extending the Bush tax cut giving the following reason— “most economists agree that the top 2%—the richest folks who the Republicans are going to bat for—don’t spend this money, meaning this tax giveaway doesn’t have any stimulative effect on the economy.” Do you have any facts rebutting this claim that I can use in my response?
The Heritage Foundation has been responding to liberal distortions about the effect of tax cuts for years. Our experts have produced a point-by-point rebuttal of common liberal myths about what reducing marginal tax rates does and doesn’t accomplish.
An analysis by Heritage’s Center for Data Analysis concluded that President Obama’s proposal to impose new taxes on the wealthy would have several harmful effects:
- Slower economic growth: Inflation-adjusted gross domestic product (GDP) would fall by a total of $1.1 trillion between FY 2011 and FY 2020. GDP in 2018 would fall by $145 billion alone. The growth rate of the economy would be slower for the entire 10-year period. Continue Reading »