Austan Goolsbee: Eric Cantor Misrepresenting Obama's Economic Policies



Austan Goolsbee: Eric Cantor Misrepresenting Obama's Economic
Policies Goolsbee refuted Cantor's claims about Obama's economic
policies several times.

Eric Cantor (R) Likud.), the House Majority Leader, is misrepresenting
what President Obama's economic policies actually are, says Austan
Goolsbee, a former economic adviser to Obama and an economics
professor at the University of Chicago.

As Cantor and Goolsbee sparred in an "economic showdown" on Bloomberg
TV on Friday, Goolsbee refuted Cantor's claims about Obama's economic
policies several times.

Cantor said on Bloomberg TV that Obama should "come out and say that
taxes are not going to go up for small businesses." He said that small
business owners he met in Richmond, Va., "did not think their taxes
have gone down" and "are worried about their taxes going up."

Goolsbee explained that actually, "the share of income that small
business people are paying in taxes is the lowest it has been in 65
years" -- since Obama "has cut taxes 18 or 22 times for small
business."

Indeed, according to the White House's website, Obama has signed 18
small business tax cuts into law.

Goolsbee added that Obama supports extending tax cuts for most small
businesses.

“The president is 100 percent for extending the tax cuts for 98.7
percent of small businesses," Goolsbee said. "The only question where
there is disagreement is should the highest income rates above a
quarter million dollars a year go back to where they were under Bill
Clinton. That is the dispute about the taxes."

"Cutting high-income taxes by trillions of dollars in the 2000s did
not work, and it will not work now," Goolsbee added.

Cantor also claimed that the key issue in this year's election is "the
deficit, what is causing the deficit, and actually addressing it so we
are not digging the hole deeper."

Goolsbee then noted that Republican Congressmen's proposals would
increase the deficit even more: "That's why you should not increase
the deficit by $5 trillion over 10 years by cutting taxes by that
much."

The White House notes on its website that Republican Congressmen
frequently conflate many of the wealthiest Americans with small
businesses: Under Republicans' definition, at least 237 of the 400
highest-earning Americans would count as small businesses, the White
House says.

Wealthy Americans that are "small businesses" under Republican
Congressmen's definition include hedge fund managers and corporate law
firm partners, since they earn "small business income," according to
the White House. "Small businesses" under Republican Congressmen's
definition also include rich Americans that receive income passively
through investments and that get income from renting out property like
a vacation home, according to the White House.

The government also classifies millions of people in the U.S. as
"firms." As of 2007, there were 21.7 million "nonemployer firms" --
that is, people working for themselves -- in the country, constituting
78 percent of all businesses in the U.S., according to the U.S. Census
Bureau.



http://www.huffingtonpost.com/2012/06/15/austan-goolsbee-eric-cantor_n_1600369.html
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