Posts Tagged ‘forbes’

The “Cost” of Keeping Current Tax Rates…

December 17, 2010

Sometimes I find an article, from a respected source, that just makes me want to Scream!!!  Where do these “authors” come from?  How do they keep getting paid?

Normally, I enjoy reading Forbes, as I find that they provide differing view points on subjects, and try to explain complex situations.  The article by Brian Wingfield, “Congress Sends Tax Bill To Obama“, however, is NOT one of those articles.  Here is the quote that is obviously false (or a blatant attempt to mislead readers):

At a cost of of $858 billion over the next decade–none of it paid for–the bill is the single most damaging measure for the U.S. federal budget deficit that Congress has produced in years. (More so than either the 2008 TARP program, the 2009 economic stimulus bill or the health care reform act signed into law earlier this year.)”

Mr. Wingfield, are you kidding me??  Let me outline the mistakes in this quote:

     1.  No where in the article, do you reference where your numbers come from.  For this I will assume that the $858 Billion number is correct.

    2.  It would have been respectful of your readers if you had prefaced your opinion with something.  “I feel that this is the single most damaging measure passed by Congress…” would have been much better than presenting it as a fact.  To be honest, if you had done this, I probably would have let this opinion slide.  Also, it would have been more enlightening to your readers if you had finished the statement and said who/what the act was “damaging” to.  Was it damaging to the American Public? Tax payers? Government employees? Special Interests?  By leaving the subject open, the reader must assume what you mean.

     3.  To say that the continuation of the current tax code “costs” more than Obamacare, is provably incorrect.  Even the Democrats said, when they passed shoved it down our throats, that the “cost” would be $980 BILLION (UPDATE: $940 Billion) in the first decade.  But if you need more proof read the report from the CBO.  The Weekly Standard has a good summary.  The CBO estimates that Obamacare will cost more than $2 TRILLION, or more than double your “cost” of extending the current Tax rates.

     4.  Which brings me to your false argument that extending the current tax rates “costs” anything!!  IF you keep tax rates the same, it does not cost the Government ANYTHING!!  The definition of cost is the amount PAID for something.   As there is NO money leaving the governments hand, being received by the tax payers, it is NOT A COST to the government!!!  IF the government were to RAISE taxes, it would COST the American Tax payers money.  Lowering taxes does NOT cost the government money.  It merely reduces the government revenue.

Please, do at least some research before you attempt to sway your readers to your viewpoint.  Please, spend some time and learn the English language instead of parroting your favored mentors and spreading their poisonous falsehoods.

As for your “opinion” that extending the current tax rates is the most damaging act passed, Obamacare is far worse for the American public.  I also feel that the “cost” of the stimulus was much greater, as the $800+ Billion was expensed in a single year, as opposed to a full decade.  It would be nice if you would at least explore the other side of any argument.