CBS Takes Jabs at GOP Tax Plans, Reports Dem Plans Without Criticism


Thursday's CBS Evening News took a look at the economic and tax plans for some of the candidates from both parties, but, while Democratic plans were reported without any references to criticism, correpondent Chip Reid took jabs at Republican tax cut plans, labeling that of Mitt Romney, who "made a fortune in business," as being "right out of the playbooks of Ronald Reagan and George Bush." Reid further suggested that Mike Huckabee's plan for a national sales tax contradicts his "populist" message of "protecting the middle class," as the CBS correspondent neglected to mention that Huckabee's plan would also abolish the federal income tax and provide rebates to those with lower incomes. (Transcript follows)

After leading with a story on the possibility of a recession developing this year, Katie Couric introduced the night's second story: "Of course, for the next 53 weeks, the economy is President Bush's problem, but voters want to know what the candidates who may succeed him would do about it. Here's Chip Reid to tell us."

Reid began by contending that for most Republican candidates, "the answer to every question about the economy begins with cutting taxes." Then, as Reid relayed Romney's plan to "cut corporate taxes and keep tax cuts for the wealthy," the CBS News correspondent mentioned that Romney "made a fortune in business," possibly suggesting that his motives may be of self-interest. Reid: "Mitt Romney, who made a fortune in business, wants to cut corporate taxes and keep tax cuts for the wealthy, cuts he says will stimulate the economy and create jobs."

Reid then referred to cutting taxes as being "right out of the playbooks" of Reagan and Bush, which could be interpreted as suggesting the plan is primarly one of political strategy. Reid: "It's a plan right out of the play books of Ronald Reagan and George Bush -- an approach also being followed by Rudy Giuliani, who this week unveiled what he calls his multitrillion dollar tax cut, which includes slashing corporate tax rates by 10 percent."

After mentioning that John McCain wants to cut federal spending, Reid moved to Huckabee's plan for a national sales tax. But instead of describing Huckabee's "fair tax" plan to abolish the federal income tax, the potential benefits of taxing consumption instead of income, or the plan to provide rebates to those with lower incomes to make the sales tax progressive, Reid characterized the plan as contradicting Huckabee's desire to "protect the middle class" as he vaguely cited the opinions of "many economists."

CHIP REID: "Mike Huckabee sounds like a populist, someone who's all about protecting the middle class, recently taking this swipe at Mitt Romney.

MIKE HUCKABEE: People are wanting to elect a President that reminds them of the guy they work with, not the guy that laid them off.

REID: But Huckabee wants a national sales tax, which many economists say would increase taxes on the middle class and cut taxes for the rich.

Reid went on to report economic plans of Democrats Hillary Clinton, Barack Obama and John Edwards without mentioning any potential down sides to raising the minimum wage or to raising taxes on the wealthy. Reid: "The Democrats' economic game plan is dramatically different. ... They say what's needed is help for the middle class, not for corporations and the wealthy."

Below is a complete transcript of the story filed by Chip Reid from the Thursday January 10 CBS Evening News:

KATIE COURIC: Of course, for the next 53 weeks, the economy is President Bush's problem, but voters want to know what the candidates who may succeed him would do about it. Here's Chip Reid to tell us.

CHIP REID: For most of the Republican candidates, the answer to every question about the economy begins with cutting taxes.

MITT ROMNEY: I want to make the Bush tax cuts permanent.

REID: Mitt Romney, who made a fortune in business, wants to cut corporate taxes and keep tax cuts for the wealthy, cuts he says will stimulate the economy and create jobs. It's a plan right out of the playbooks of Ronald Reagan and George Bush -- an approach also being followed by Rudy Giuliani, who this week unveiled what he calls his multitrillion dollar tax cut, which includes slashing corporate tax rates by 10 percent. John McCain also holds himself out as a disciple of Ronald Reagan -- not so much on taxes but on cutting spending.

JOHN MCCAIN: He used to say, "Congress spends money like a drunken sailor, only I never knew a sailor drunk or sober with the imagination of Congress."

REID: For years, McCain has argued that cutting the deficit is one of the keys to economic health. Mike Huckabee sounds like a populist, someone who's all about protecting the middle class, recently taking this swipe at Mitt Romney.

MIKE HUCKABEE: People are wanting to elect a President that reminds them of the guy they work with, not the guy that laid them off.

REID: But Huckabee wants a national sales tax, which many economists say would increase taxes on the middle class and cut taxes for the rich. The Democrats' economic game plan is dramatically different.

HILLARY CLINTON: I think the economy is slipping toward a recession.

REID: They say what's needed is help for the middle class, not for corporations and the wealthy.

BARACK OBAMA: Opportunity and bottom-up economic growth is what the President should be fighting for.

REID: All three Democrats call for tax cuts for the middle class, eliminating tax cuts for the wealthy, and a big boost in the minimum wage. But they differ in the details. Hillary Clinton proposes tax credits for savings accounts, Barack Obama wants automatic payroll deductions for retirement savings, and John Edwards wants the rich to pay more taxes.

JOHN EDWARDS: Is it good for working middle class Americans? That's the question.

REID: And with the economy becoming such a huge issue in this campaign, how voters respond to those various economic plans could very well make the difference in which candidate makes it all the way here to the White House.


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Chip Reid..there is a name that exudes non intelligence

I actually listened to Hillary and she wants to do all these helpful programs to employ everyone, educate everyone and care for everyone. That costs money Chip, about 8 trillion dollars a year.

The US can not afford that.

 

*HIC IACET ARTORIVS REX QVONDAM REXQVE FVTVRVS

Voters, being stupid people,

Voters, being stupid people, don't bother thinking about the cost of anything.

 I remember the first time Clinton ran for President.  I told my wife he'd never win because he's saying he will give everything to everyone.

 Well, after he won I gained a lot more respect for the term: "ignorant masses." 

Remember Clinton only won

Sonny, remember Clinton only won because of the Taxi door ear Peroit (sp?). If it where not for Peroit who knows, Slick Willy may not have ever won the persidency.

Not even clever about it anymore

Logically, by Reid's own report, "the answer to every question about the economy begins with cutting taxes" applies to all the candidates, from both parties. However, Reid chooses to claim that the Democrats' cutting taxes only apply to the middle class, and eliminates them for the wealthy. Reid repeats, without rebuttal, the Democrat accusation that the GOP plan will not help the middle class, but will instead only help corporations and the wealthy.

If Reid similarly characterized the Democrats' plan from the perspective of the GOP, it might be fair, but Reid doesn't do that. Obviously, the definition of liberal bias is to report only the perspective of liberals about conservatives.

Jeez, at least try to cover your biases ...

Reid began by contending

Reid began by contending that for most Republican candidates, "the
answer to every question about the economy begins with cutting taxes."

Yeah, Chip, for the people that actually PAY taxes...as opposed to giving "refunds" and "rebates" to those who don't.

He neglects to mention that for the Democrat candidates the answer to every question about the economy begins with increasing taxes "on the wealthiest Americans."

No problem, though. I'm sure this is a two-part thing, and tonight he will address and critique the problems of the Democrats' tax plans.....I'm especially looking forward to their explanations of how increasing taxes on the wealthy and a "big boost in the minimum wage" will expand the economy.

Can't wait.

Reid's thinking

What makes you think Reid would want to shrink the ranks of the unemployed. 

I ♣ My Seal

I wonder why John Edwards is

I wonder why John Edwards is never introduced as the guy "who made a fortune bilking the health care industry" whenever he talks about his "two Americas".  In typical leftist fashion, the media looks at anyone who is successfull in business as being evil, yet someone who earns tens of millions of dollars in phony law suits is not questioned at all.

Smartypants

Not to mention he announced his candidacy in front of a property in New Orleans possibly foreclosed upon by the hedge fund he worked for. 

I ♣ My Seal

Collapsing economies

Of course:

"Of course, for the next 53 weeks, the economy is President Bush's problem, but voters want to know what the candidates who may succeed him would do about it."

Of course, the collapsing economy of 2000 somehow did not exist in the minds of the press, and what to do about it was seldom a discussion in that election year race.

Just a correction for your article

"the CBS correspondent neglected to mention that Huckabee's plan would
also abolish the federal income tax and provide rebates to those with
lower incomes."

The plan Huckabee is supporting is the Fair Tax. It provides a monthly prebate to everyone. Not just those with lower incomes. The monthly prebate covers the cost for the basics (food, etc) up to the level of poverty.

I'm a supporter of the Fair Tax but not a supporter of Huckabee btw.

Huckabee, the end of tax slavery

Huckabee is ONE with the FairTax grassroots movement. While many - like Romney, and others, who are invested in the current income tax system - seek to demagog the well-researched FairTax plan, its acceptance in the professional / academic community continues to grow. Renown economist Laurence Kotlikoff believes that failure to enact the FairTax - choosing instead to try to "flatten" what he deems to be a non-flattenable income tax system - will eventuate into an irrevocable economic meltdown because of the hidden aspects of the current system that make political accountability impossible.

Romney's recent WEAK response to FairTax questioning on “This Week with Geo. Stephanopoulos” drew a sharper contrast between Huckabee and all other presidential front-runners who will not embrace it. Huckabee understands that what's wrong with the income tax can't be fixed with "a tap of the hammer, nor a twist of the screwdriver." That his opponents cling to the destructive Tax Code, the IRS, preserving political power of granting tax favors at continued cost to - and misery of - American families, invigorates his campaign's raison d'etre.

Of the FairTax, Huckabee asserts that it's...

• SIMPLE, easy to understand
• EFFICIENT, inexpensive to comply with and doesn't cause less-than-optimal business decisions for tax minimization purposes
• FAIR, FLAT, and FAMILY FRIENDLY, loophole-free, and everyone pays their share
• LOW TAX RATE is achieved by broad base with no exclusions
• PREDICTABLE, doesn't change, so financial planning is possible
• UNINTRUSIVE, doesn't intrude into our personal affairs or limit our liberty
• VISIBLE, not hidden from the public in tax-inflated prices or otherwise
• PRODUCTIVE, rewards - rather than penalizes - work and productivity

A detailed benefits analysis of the plan (from The FairTax Book) explains Huckabee's ardent advocacy:

For INDIVIDUALS:

• No more tax on income - make as much as you wish

• FairTax is paid on retail goods and services when purchased new, not used

• You receive your full paycheck - no more deductions
• Every household receives a monthly amount, or "prebate"
• "Prebate" is "advance tax payback" for monthly consumption to poverty level
• FairTax ensures poverty protection, being less regressive than income tax
• Increased household income preserves real purchasing power against any higher prices

• Reduction of pre-FairTaxed retail prices (due to reduced costs; increased competition)
• 29.9% mark-up yields 23% FairTax portion of new price tags
• FairTax portion of new prices reveal true cost of gov't to consumers

• FairTax is captured on illicit forms of income, when spent
• Parasitic income tax filing industry eliminated
• No double taxation on goods and services
No more IRS or FILING OF INCOME TAX returns
• Savings is bolstered with reduction of interest rates

For BUSINESSES:

• Corporate income and payroll taxes revoked under FairTax

• Business compensated for collecting tax at "cash register"

• No more tax-related lawyers, lobbyists on company payrolls
No more embedded (hidden) income/payroll taxes in prices
• Reduced costs. Competition - not tax policy - drives prices
• Off-shore "tax haven" headquarters can now return to U.S
No more "favors" from politicians at expense of taxpayers
• Resources go to R&D and study of competition - not taxes
• Global "free (and equitable) trade" becomes possible for currently-disadvanted U.S. exports
• U.S. exports increase their share of foreign markets

For the COUNTRY:
• 7% - 13% economic growth projected in the first year of the FairTax
Jobs return to the U.S.
• Foreign corporations "set up shop" in the U.S.
• Tax system trends are corrected to "enlarge the pie"
• Larger economic "pie," means thinner tax rate "slices"
• Initial 23% portion of price is pressured downward as "pie" increases
No more "closed door" tax deals by politicians and business
• FairTax sets new global standard. Other countries will follow

Passionately supporting FairTax, Huckabee understands that, if elected President, Congress will have to present the bill for his signature. His call to action goes beyond his candidacy: Main Street will have to demand that their legislators deliver the bill.