Budget | Media Matters for America

Budget

Issues ››› Budget
  • Ted Cruz said he always opposed government shutdowns. He told Hannity something else in 2013.

    Blog ››› ››› MEDIA MATTERS STAFF

    Senator Ted Cruz (R-TX)  told reporters he has “consistently opposed shut downs,” a statement that contradicts his position in 2013.

    In 2013 Politico reported that Cruz’s colleagues were “angry” with him “for helping prompt a government shutdown crisis without a strategy to end it.” And earlier in the year on Hannity, Cruz endorsed the idea of a “partial government shutdown,” while also agreeing with Sean Hannity that the 1995 shutdown was positive because “We got to a balanced budget for the first time.” From the Janury 8, 2013 edition of Fox News’ Hannity:

    SEAN HANNITY (HOST): You said something the other day I was really glad you said. I think the Republicans were weak when it came to the fiscal cliff. I think they have a lot more leverage now over the debt ceiling.

    TED CRUZ:  Yep.

    HANNITY: So my question to you, you said they should be willing to shut the government down, not all functions of the government.

    CRUZ:  Right, right.

    HANNITY: What would you shut down and do you think your fellow Republicans will do that?

    CRUZ: Well, I hope we stand strong. The reason we got a lousy deal with the fiscal cliff, is that President Obama had the leverage. Because when you've got divided government, whoever owns the default, whoever wins if nothing is done is in the strongest position, and Obama was in a strong position there because if nothing was done taxes were raised on every American taxpayer. With respect to the debt ceiling, we have the default. If fiscal conservatives stand together we can forcesome substantive reforms, some pro-growth reforms, and if not the effect is not a default and Obama is going to say that over and over and over again, and we’ve got to be very clear, it's not a default we should always, always, always pay our debts. But what the effect would be is a partial government shutdown. And we’ve seen that before, we saw it in 1995 with Republicans in congress.

    HANNITY: It worked. We got to a balanced budget for the first time.

    CRUZ: Year after year after year.

  • Media keep calling the GOP's corporate tax bill a "win" for Trump

    The extraordinarily unpopular bill is built on lies and ignores what we know about economics

    Blog ››› ››› CRAIG HARRINGTON

    President Donald Trump and his Republican congressional allies are enjoying a round of praise from media commentators for finally getting a legislative “win” on the board as their tax bill closes in on passage before the end of the year. The budget-busting corporate giveaway will enrich the superwealthy and do little for Americans who have to work for a living.

    Republicans finally unveiled the finished version of their tax legislation last Friday evening, and -- despite the public having just days to absorb its 1,097 pages -- both chambers of Congress plan to vote on the bill before the end of the week. If everything goes according to plan, the president will sign the bill into law just in time for members to head home for the holidays.

    After a year plagued by self-destructive outbursts, failed policy changes, unprecedented legal troubles, embarrassing scandals, humiliating legislative defeats, and nationwide political upheaval, many in the press are framing the GOP tax proposal as a crucial “win” for Trump and his party.

    On the December 18 edition of CNN Newsroom, co-host Poppy Harlow wondered how anyone could argue the past year “hasn’t been a win for the president on some big fronts,” given a handful of recent accomplishments, including the new tax bill. Reporter Caitlin Huey-Burns agreed with Harlow’s assessment while noting that such favorable framing fits “the way that the White House has been messaging their own achievements”:

    During an earlier segment on CNN’s New Day, guest A.B. Stoddard suggested that the Republican tax bill, which the Economic Policy Institute has labeled “a scam,” could count as “a great boon for Republicans” and “a win on the board,” if the bill actually fulfilled its over the top promises. (It won’t.) Commentary framing the expected party-line vote as a major victory for the GOP also cropped up in The Associated Press, Politico, The Hill, and The New York Times. Reporters have seemingly gone out of their way to pat Republicans on the back for endorsing legislation so historically unpopular it registers significantly less support than some previous tax hikes:


    FiveThirtyEight.com

    In a December 15 video, Eric Schoenberg of the activist group Patriotic Millionaires explained how the GOP tax bill overwhelming favors wealthy people like him (and the Trump family) while doing little for lower- and middle-class people. Trump and the Republicans continue falsely claiming that the bill will spur business development, boost wages, and stoke renewed economic growth, but the message is such a fantasy even Fox News had to admit there was nothing to it. Previous studies from the Congressional Research Service and the Brookings Institution have demonstrated little relationship between tax cuts for the wealthy and invigorated economic activity, which Trump and the GOP have promised will result from this tax bill.

    The bill permanently cuts taxes for corporations while giving only modest, temporary relief for working people. It loosens tax structures affecting the wealthiest Americans while threatening funds for Medicare, Social Security, Medicaid, and other initiatives that guarantee basic economic security to low-income families. The bill promises to add another $1.5 trillion to federal budget deficits over the next decade despite years of hysteria about Obama-era revenue shortfalls. The bill also senselessly repeals the Affordable Care Act’s individual mandate, which will likely result in millions of Americans dropping out of the insurance market.

    Rather than praising the Republican Party for ending a remarkably unproductive year by managing to cobble together a tax giveaway to the super rich, journalists should report on what is actually in the bill. Trump and the GOP have definitely enjoyed some "wins" this year, but reporters need to point out that the Republican Party's successes have often resulted in pain and suffering for millions of Americans.

  • Ali Velshi and Stephanie Ruhle unleash a torrential debunking of a GOP congressman's tax policy lies

    This is exactly how journalists need to treat the Republicans’ messaging nonsense on their giveaway to the rich

    Blog ››› ››› CRAIG HARRINGTON

    MSNBC hosts Ali Velshi and Stephanie Ruhle thoroughly debunked conservative talking points about the Republican Party’s pro-corporate tax policy during an interview with an ill-prepared member of Congress, who was attempting to build support for his party’s proposed tax changes that overwhelmingly favor the wealthy.

    During the December 4 edition of MSNBC Live with Velshi and Ruhle, Velshi presented a detailed outline of the many ways in which Republican tax bills in the House and Senate will fall short of GOP promises and commitments. Velshi noted that numerous independent analyses have shown the GOP plans will add upwards of $1 trillion to the national debt, and pointed out that despite “huge changes made to our tax code … we’ve seen no observable shift to long-term growth rates in the last 150 years.” Velshi also pointed to a survey conducted by the University of Chicago’s Booth School of Business, which found that none of the 42 leading economists surveyed believe the plans will be able to boost economic growth rates by enough to make up for lost revenue. He concluded the segment by pointing to a recently-released Goldman Sachs analysis of the Senate tax bill, which concluded that economic growth stemming from the tax bill will be lower than Republicans have claimed, and, as Velshi stated, “possibly even … negative” after a few years:

    Immediately after outlining all the problems in the GOP tax plans, MSNBC invited Rep. Chris Stewart (R-UT) on the program and gave him an opportunity to defend his party’s policy priorities. Stewart’s performance did not go as he might have anticipated, with co-hosts Velshi and Ruhle taking turns debunking GOP talking points and pillorying Stewart’s excuses for the tax plan.

    The co-hosts rebuffed Stewart’s repeated assertions that tax cuts for profitable corporations and wealthy individuals will boost economic growth (a 2012 Congressional Research Service study found no correlation between income tax rates and economic growth, and a 2014 study from the Brookings Institution argued the relationship between tax cuts and growth was “theoretically uncertain”), they corrected his false claim that the United States has the world’s highest corporate taxes (effective corporate rates are the same as other developed countries), and they called out his false claim that “the American people want us to do this” (the GOP tax plans are actually extremely unpopular). When Stewart claimed the GOP plans are effective in simplifying the tax code, Ruhle challenged him over and over to name a single corporate loophole that is being removed (he couldn’t), and both co-hosts stung Stewart over how Republican plans fail to address the so-called “carried interest” loophole, which helps extremely high-income individuals avoid paying taxes on some of their income.

    By the end of his nearly 11-minute grilling, Stewart was actually defending the discredited theory of “trickle-down economics” by name, which Velshi correctly noted was such a disaster in Kansas that the state’s Republican-dominated legislature had to abandon their conservative tax agenda.

    This takedown from Velshi and Ruhle is not the first time the MSNBC duo has discredited the GOP’s hollow economic message. Both Velshi and Ruhle have spent considerable time over the past several months pointing out that the Republican agenda favors wealthy individuals, profitable corporations, and the Trump family at the expense of lower- and middle-income Americans. This important work in correcting purposeful misinformation about the GOP's right-wing agenda is all the more important as Republican lawmakers prepare to enact tax policy changes that could affect millions of Americans for years to come.

  • Three lies about the Senate Republican tax plan that journalists need to correct

    Blog ››› ››› JULIE ALDERMAN


    Sarah Wasko / Media Matters

    As Republicans prepare to vote on a bill to drastically alter the tax code by slashing corporate rates and creating carve-outs for the wealthy at the expense of some of the most vulnerable, some Republican senators took to cable news to hype the proposal. The lawmakers relied on debunked myths to encourage voters and their colleagues to support the historically unpopular legislation. In some cases, journalists pushed back on these talking points. But in the future, reporters must be quick to immediately debunk this onslaught of misinformation and deception.

    Republicans claim everyone will get a tax cut

    Several Republican lawmakers pitched the plan by claiming that every income group would receive a tax cut. On the November 30 edition of Fox News’ The Daily Briefing, Sen. Dan Sullivan (R-AK) stated that “everybody does get a tax cut” from this plan in response to questioning from host Sandra Smith.

    In an interview with Fox News’ Bill Hemmer on the November 29 edition of America’s Newsroom, Sen. John Thune (R-SD) claimed that “every income group is going to get a tax cut,” to which Hemmer offered no push back.

    Sen. John Cornyn (R-TX) went a step further on the November 29 edition of CNN’s New Day, asserting that “every income bracket will benefit and the lower income brackets … will benefit the most.” Cornyn’s comments came after CNN’s Chris Cuomo pointed out that “this was billed as a middle-class” plan, but “there is no analysis that shows them being helped disproportionately to the top tier.”

    These claims are not true. According to The Washington Post, Congress’ Joint Committee on Taxation (JCT) estimated that the bill would “give large tax cuts to the rich while raising taxes on American families earning $10,000 to $75,000 over the next decade.” Additionally, The New York Times found that “two-thirds of middle-class households would get a tax increase in 2027, and none — zero percent — would get a tax cut.”

    Republicans assert Medicare will be unaffected by the bill

    In a November 29 interview on Fox News’ The Ingraham Angle, Senate Majority Leader Mitch McConnell (R-KY) claimed that Republicans are “not touching Medicare at all in this bill” with no pushback from host Laura Ingraham.

    This claim was also made by Sen. Pat Toomey (R-PA), who, according to The Wall Street Journal, asserted that the bill includes “no cuts to Medicare.” But the Journal correctly noted, “Medicare would be cut by $25 billion in fiscal 2018 as a result of the bill because it would trigger automatic spending cuts under a pay-as-you-go budgeting law.”

    Additionally, according to Los Angeles Times columnist Michael Hiltzik, Sen. Marco Rubio (R-FL) essentially admitted that the tax bill “is the prelude to a larger attack on Social Security and Medicare.” During a November 29 interview forum hosted by Politico, Rubio said tax cuts would help with “instituting structural changes to Social Security and Medicare for the future.” Rubio’s claim is also backed up by the nonpartisan Congressional Budget Office (CBO), which found that to offset deficit increases, automatic cuts would be made to Medicare of up to $25 billion next year.

    McConnell insists the bill will not increase the deficit

    Also in his interview with Laura Ingraham, McConnell claimed that the tax bill “is not going to be a deficit producing effort.” Once again, Ingraham did not give any pushback to McConnell on his claim.

    This, of course, is false. According to The New York Times, the JCT found that “the legislation would add $1 trillion to federal budget deficits over a decade, even after accounting for economic growth."

  • Study: Local TV news omits key details of Senate GOP's tax bill

    ››› ››› JULIE ALDERMAN

    A Media Matters analysis found that key provisions of the tax bill put forth by Senate Republicans were all but omitted from local media coverage of the plan in Portland, ME; Phoenix, AZ; Madison, WI; Anchorage, AK; and Nashville, TN. Additionally, while local media widely reported that the bill would repeal the Affordable Care Act’s (ACA) individual mandate, they neglected to note that doing so would raise premiums and increase the number of uninsured people. Stations owned by Sinclair Broadcast Group, a conservative media conglomerate friendly to the Trump administration, also were worse than other stations in reporting on these important aspects of the bill.

  • Trump administration officials use Sunday news shows to lie about GOP tax bills

    Blog ››› ››› MEDIA MATTERS STAFF

    Treasury Secretary Steve Mnuchin and Office of Management and Budget Director Mick Mulvaney appeared on Sunday news shows and lied about the effects of the House and Senate tax bills. In their current forms, the bills will raise taxes for many middle-income Americans, provide a tax break for wealthy Americans and corporations, and significantly increase the deficit.

    On Fox Broadcasting Co.’s Fox News Sunday, Mnuchin mischaracterized the bill by claiming that “middle-income people are getting cuts, and rich people are getting very little cuts or in very certain cases increases.” In fact, under the Senate version of the bill, families earning less than $75,000 will see a tax increase while the wealthiest Americans and corporations will see rates go down and enjoy special carve outs, including a tax exemption for private jet management. Host Chris Wallace also pointed out that the nonpartisan Joint Committee on Taxation estimated that the bill that just passed the House of Representatives would give “80 percent of its cuts to corporations, businesses, and wealthy families.” From the November 19 edition of Fox News Sunday:

    Similarly, on CNN’s State of the Union, Mulvaney falsely claimed that the Senate bill “absolutely [would] not” cost at least $1.5 trillion, in direct contradiction a number of studies that estimate the cost of the bill would be as high as $1.8 trillion. From the November 19 edition of State of the Union:

  • MSNBC hosts offer a perfect cable news template for covering Trump’s tax cut charade

    Ali Velshi and Stephanie Ruhle dismantle arguments that Trump plan will benefit the economy

    Blog ››› ››› CRAIG HARRINGTON


    Sarah Wasko / Media Matters

    In response to the release of a new Republican tax proposal, three consecutive segments hosted by MSNBC’s Ali Velshi and Stephanie Ruhle offered a perfect example of how cable news ought to cover President Donald Trump’s tax agenda.

    The September 27 edition of MSNBC Live with Velshi and Ruhle opened with the co-hosts breaking down the entire Trump tax cut plan. Velshi argued that proposed income tax changes were “a little smoke and mirrors” and would have no “meaningful effect on prosperity” for most Americans, additionally explaining how Trump’s proposal to eliminate the estate and alternative minimum taxes -- which would result in massive tax giveaways to the Trump family -- “is a boon for the wealthy.”

    When Velshi explained Trump’s proposal to cut corporate tax rates, Ruhle interjected that Trump’s own companies (along with “law firms and hedge funds”) would benefit from the changes. Velshi concluded that the plan “overwhelmingly supports those who are higher earners” while Ruhle argued it is simply “disingenuous” to claim the middle class would benefit from Trump’s plan:

    The hosts then brought in CNBC correspondent John Harwood to discuss the tax plan, where he, too, stressed that the Trump plan “is simply not a tax proposal that is geared toward the middle class” and reminded viewers that Trump’s strategy resembles the failed tax cuts enacted by President George W. Bush. Obama administration press secretary Josh Earnest joined the conversation, concluding the segment by noting that none of Trump’s rally goers are motivated by reduced taxes for the rich and corporations:

    After thoroughly dismantling the Trump administration’s tax agenda, the program turned to conservative policy analyst Michael Strain of the American Enterprise Institute (AEI), who also noted that the plan, as it stands today, would be unlikely to fulfill Trump’s promises of increased economic growth and would end up adding to federal budget deficits. At the end of the segment, Earnest once again noted the “internal inconsistency” at play when Trump, after recently arguing the rich don’t need a tax cut, proposes a plan that gives them one: