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  • Driving A Wedge Between Reality and Reporting

    Self-styled commentator, comedian, and wedge-issue fan, Tina Dupuy, recently drove a wedge between reality and reporting.  In her Atlantic column she declares the bogus assertions of Citizens for Tax Justice as “fact,” and trashes The Heritage Foundation analysis for employing common sense and economic logic.

    When an activity is rewarded, people engage in more of that activity.  When an activity is penalized, people engage in less of it.  The greater the reward or penalty, the greater will be the response.  If anything in the social sciences can be universally regarded as fact, it is those preceding statements.

    Nevertheless, Tina Dupuy’s “fact” is based entirely on ignoring this universal truth.  She cites, as fact, the Citizens for Tax Justice analysis of tax revenues for the years 2001-2006.  The table on page two makes clear they assume tax rates have no effect on people’s behavior.  That is, had there been no tax cuts, revenues would have been higher by exactly the increase in tax rates.

    This absurd logic decimated the high-end boat-building industry in the early 1990s.  In 1991 a 10 percent tax on luxury boats went into effect.  Compared to 1990, the 1991 sales dropped 70 percent.  The original tax projection (like those done by Citizens for Tax Justice) assumed sales would be unaffected by the tax.  After a decade of losing sales to foreign producers the tax was dropped with bi-partisan support.

    Certainly there can be debate over how much people respond to tax rates, but zero is not one of the possibilities.

    Posted in Economics [slideshow_deploy]

    3 Responses to Driving A Wedge Between Reality and Reporting

    1. Bobbie says:

      Tina Dupuy is one of the ill logic enablers. The people she pretends to support is her drive to demean. Especially her drive to convince people deception as truth.

      "Citizens for Tax Justice?" Talk about trash! How ignorant!

    2. Stephen B, NC says:

      The Difference Between Conservatives and Liberals –

      Conservatives deal with facts and reach conclusions; liberals have conclusions and sell them as facts.

    3. Coitus says:

      Please tell me that "someone" out there did not anticipate this from a "do nothing… know nothing… never had a job" trying to run this country. I don't give a big black rats butt what color he is; this man did not enter the white house to save this country. but to destroy what is left of it.

      How long people… how before we take this lying crook out by impeachement???

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