Senate Democrats

Rhetoric vs. Reality: Republicans Feign Concern For Economy But Push Tax Bailouts That Explode Our Deficit And Don’t Create Jobs

RHETORIC: REPUBLICANS CLAIM THEY CARE ABOUT THE DEFICIT

Ø  Senator Coburn: “We have to live within our budget.  What we have is an obligation to our kids and our grandkids.” [Associated Press, 7/8/10]

Ø  Senator DeMint: "The Republicans are the only one who can carry the banner of…stop the spending, stop the borrowing, stop the debt, stop the takeovers.” [CNN, 9/19/10]

Ø  Senator Gregg: “…the biggest problem our nation has confronting us after the threat of terrorism and weapons of mass destruction, and that is the impending fiscal meltdown of our nation.” [C-SPAN, 11/15/09]

REALITY: REPUBLICANS’ TAX CUTS FOR MILLIONAIRES WOULD ADD $700 BILLION TO THE DEFICIT

Ø  Tax Cuts For Top Two Percent Of Income-Earners Would Cost $700 Billion. “Extending them for the next 10 years would add about $3.8 trillion to a growing national debt that is already the largest since World War II. About $700 billion of that reflects the projected costs of tax cuts for those in the top 2 percent of income-earners.” [New York Times, 8/10/10] 

Ø  CBO States That Tax Cuts for Millionaires Will Add To Budget Deficits. In a January report, the Congressional Budget Office Concludes that giving tax cuts to millionaires “would add to the already large projected budget deficits. Unless offsetting actions were taken to reverse the accumulation of additional government debt, future incomes would tend to be lower than they otherwise would have been.”  [CBO: Policies For Increasing Economic Growth And Employment In 2010 And 2011, January 2010]

RHETORIC: REPUBLICANS CLAIM THEY HAVE BEEN URGING CONGRESS TO MAKE JOB CREATION A PRIORITY [Letter to Senator Reid, 11/29/10]

REALITY: TAX GIVEAWAYS TO MILLIONAIRES ARE AMONG THE LEAST EFFECTIVE WAYS TO GROW THE ECONOMY

Ø  Non-Partisan Congressional Budget Office Concludes High-Income Tax Cuts Not A Viable Option For Boosting Economic Growth. In a January report analyzing policies for increasing economic growth in 2010 and 2011, the Congressional Budget Office states that, “policies that would temporarily increase the aftertax income of people with relatively high income, such as an across-the-board reduction in income taxes or an increase in the exemption amount for the AMT, would have smaller effects because such tax cuts would probably not affect the recipients’ spending significantly.”  [CBO: Policies For Increasing Economic Growth And Employment In 2010 And 2011, January 2010]

Ø  Millionaire Tax Cuts Would Not Help Small Businesses. In a report, the Center on Budget and Policy Priorities says, “In reality, however, extending the tax cuts would do little for small business because only the top 3 percent of people with any business income, let alone income from a small business, would benefit. Over the long term, an extension would likely harm the economy — and thus small business — by adding about $1 trillion to deficits and debt over the next decade and even larger amounts in subsequent decades.” [Center on Budget and Policy Priorities, 8/10/10]

Ø  Treasury Secretary Geithner Debunks False Republican Small Business Argument. Republicans argue rates should be extended for everyone, and that higher rates would punish small businesses. Geithner responded, “[t]his argument apparently counts anyone who receives any type of partnership or business income as if they were a small business,” he said. “By this standard, every partner in a major law firm and every principal in a major financial institution would count as a separate small business.” [McClatchy-Tribune News Service,9/12/10]

RHETORIC: REPUBLICANS CLAIM THEY WANT TO MAKE JOB CREATION A PRIORITY [Letter to Senator Reid, 11/29/10]

REALITY: HOURS LATER, THEY OBJECT TO SEVEN JOB-CREATING MEASURES

Ø  Republicans Object To Seven Pieces Of Job Creating Legislation. [Congressional Record, 12/1/10]

·          S.3981: Unemployment Insurance Stabilization Act of 2010 (UI)

·          S.1574 : Clean Energy for Homes and Buildings Act of 2009

·          S.3324: Security in Energy and Manufacturing Act of 2010 (SEAM Act of 2010)

·          S.3563 : Rebuilding Local Business Act of 2010

·          S.3623, HIRE Now Tax Cuts Extension Act of 2010

·          S.3816, Creating American Jobs and Ending Offshoring Act

·          S.3102, Rural Energy Savings Program Act

Bookmark and Share