Taxes, Revenues, and Bad Reporting.

Robert McCain has a little remedial economics lesson for the MSM.

It’s funny how many journalists have no real idea how taxes work. Or perhaps they do, and would just rather report it incorrectly.

It is reporting like that that informs America wrongly, which is a real problem. Most people, I dare say, genuinely do believe that when you cut taxes, it always is a “cost” in the sense that the government will get less money. That’s not true, though it certainly could be true depending on the amount of the cut.

That’s the essence of the Laffer Curve, which is a pretty simple thing to understand in principle. You won’t find many news stories trying to explain it, though, nor will you find many that note that tax cuts actually has brought in increased revenue many, many times. Indeed, the Bush tax cuts are the most recent example of how tax cuts mean more money into the Federal treasury. It bothers me to see this sort of bad reporting because the principles behind taxes and revenues aren’t all that difficult to understand. They only become difficult when you get stories like the one in Robert’s post.

No related posts.

Category: Oh, THAT liberal media., The Economy and Your Money