The president’s budget counts on economic growth to reach a balance, but his tax cut plan also relies on that growth to remain revenue-neutral. Tax and budget experts say that’s double-counting the same money.
The release of the House GOP budget by Rep. Paul Ryan has sparked a resurgence of false and misleading claims about the Affordable Care Act, which the budget seeks to largely repeal. On the Sunday talk shows, Rep. Debbie Wasserman Schultz, the head of the Democratic National Committee, and Sen. Ron Johnson, a Republican from Wisconsin, each distorted the facts regarding revenues raised in the health care law. And Ryan wrongly said the law would take money away from Medicare and ration benefits for seniors.
An ad from a fiscally conservative group makes a true but misleading claim that the sequester only amounts to “a 3 percent cut in federal spending.” A majority of federal spending is exempt from the sequester cuts, so the parts that are not will be cut much more deeply than that. For example, defense spending (other than for military personnel) will be cut by 8 percent across the board, and nondefense discretionary spending will be cut by between 5 percent and 6 percent.
House Speaker John Boehner claimed the federal government will take in more revenue this year than any other year in history. That’s true in nominal dollars, but not as a percentage of gross domestic product — a measure preferred by most economists that accounts for growth in population, inflation and earnings.
In fact, as a percentage of GDP, revenues this year are actually lower than the historical average since World War II.
In an interview on CBS Evening News on Feb.
In a Web video, President Barack Obama leaves out some key facts about the fiscal cliff deal, possibly leaving the wrong impression about its impact on taxpayers and the deficit:
Obama boasts that “middle-class families” will not have to “pay upwards of $2,000 more in taxes this year.” That’s accurate for income taxes, but Obama doesn’t mention that the deal allowed a payroll tax cut to expire. About 77 percent of taxpayers will pay more in taxes this year —
Washington’s spending has recently been higher as a percentage of the nation’s economic output than at any time since World War II. But by the same measure, Washington’s revenues are the lowest in more than 60 years. …