By David Nace — The United States has a huge fiscal problem. Our Federal government now spends $1 for every $.60 it receives in taxes. Over the last three years, these deficits have been over $1.2 trillion each year. The narrative of the Obama administration, reinforced by left leaning national news services on how we can resolve this problem, suggests that we have a bigger problem with deceit than we do with deficits.
The Obama administration’s narrative is that our deficit problem was caused because the rich do not pay enough in taxes. The Occupy Movement was orchestrated by labor unions and others on the left to reinforce that claim. Their second claim is that we must increase tax rates for the rich to solve the deficit problem. Both of these claims are completely and utterly false. By failing to show just how false and dishonest these claims are, AP and other news services and many television networks, most blatantly MSNBC and NBC, have destroyed the credibility of journalism in America.
The reality is that the top 10 percent of taxpayers, those households earning over $115,000 per year, pay far more than their fair share of taxes. The top 10 percent of households in America earn 42 percent of all earnings but pay 70 percent of all income taxes. This information is from the Tax Foundation’s summary of IRS tables. How many times has the AP or a television network, other than Fox, stated this simple fact?
The claim that increasing tax rates for the rich, rather than reducing spending, will help to resolve the deficit is equally preposterous and fraudulent. The tax increases that the Obama administration is proposing on those households earning over $250,000 per year will do virtually nothing to solve our deficit problem. Again using data from the nonpartisan Tax Foundation, the Obama tax increases will only generate $68 billion. With $1.2 trillion deficits each of the last three years, this additional revenue will reduce the deficit by just 6 percent.
Because the Obama administration would rather fuel envy and resentment than reduce the deficit, they simply have no plan to address the other 94 percent, yet they berate Paul Ryan’s deficit reduction plan. How many times has Rachael Maddow of MSNBC or even Matt Lauer on NBC discussed the plan to reduce the other 94 percent of the deficit after they raise the taxes on the rich?
The journalism community has a moral and civic obligation to provide objective reporting of the news.
It is unfortunate that national news services and most television networks have chosen to ignore that obligation and even their own code of ethics to use their ability to influence the public for advocacy rather than objective news reporting. Their actions hurt the readership and revenue of local papers and stations that still believe in fairness in journalism. Much of the decline of the mainstream media in America is self-inflicted, due to its lack of objectivity and credibility.
David Nace, an Executive Vice President of a Pennsylvania construction and engineering company, is a Liberty Features Syndicated writer.