The Clinton Herald, Clinton, Iowa

Lifestyles

November 12, 2012

Fact check: Would tax hike on wealthy kill 700,000 jobs?

(Continued)

The study is titled "Long-run macroeconomic impact of increasing tax rates on high-income taxpayers in 2013."

In other words, this is not an immediate impact, but the "long run." You have to dig into the endnotes on page 22 to find a definition of long run: "For models of this type, roughly two-third to three-quarters of the long-run effect is reached within a decade."

Oh. So, even if one accepts the assumptions in this model — a big "if" — it still means that the loss of 700,000 jobs would not come in the first year, or by the end of Obama's second term, or even a decade from now. Yet Sessions says the jobs would be taken "from people who need those jobs," suggesting it would have an immediate effect.

Moreover, while 700,000 jobs sounds like a lot, it actually translates into one-half of 1 percent of total employment. Given that this is a long-term prediction, there is certainly a lot of room for error. So much is dependent on the assumptions in the model.

There is also another revealing endnote: "Using the additional revenue to reduce the deficit is not modeled."

That means the analysts did not even study the effect of Obama's stated purpose for raising taxes; the 700,000 figure assumes that the revenue raised from the tax increase would be used for increased government spending. Yet presumably any deal on fixing the fiscal cliff would result in a lower federal deficit, since all sides agree they have that goal.

Indeed, there are also long-term effects from permanently extending the tax cuts without cutting the deficit. This is what the Congressional Budget Office said in 2010, after studying the impact of full, partial or temporary extensions of tax cuts: "The permanent extensions of the tax cuts would have much larger negative effects in the long term than the temporary extensions because the amount of additional government debt would be so much larger."

Text Only
Lifestyles
  • Students get first-hand look at non-profits CLINTON — An upcoming event will showcase Clinton area’s non-profits to incoming Ashford University students.The second Fresh START (Serving to Achieve Results Together) event will be held Saturday, Aug. 16. Students and staff members will serve at v

    July 23, 2014

  • The Clinton Herald Jim Miller Low-cost, free cellphone options for seniors DEAR SAVVY SENIOR: What are the cheapest cell phone options available today to seniors living on a shoestring budget? I only need it for occasional calls. — Seldom Calling SeniorDEAR SELDOM: For financially challenged seniors who only want a cell pho

    July 19, 2014 1 Photo

  • Friend of the Fair Two honored as 'Friends' MORRISON, Ill. — The Whiteside County Fair recently announced its 2014 Friend of the Fair. Paul Vock and Dan Heusinkveld are this year’s honorees. The two men have been involved with the fair for decades.Vock started with the fair in 1971 as the Heav

    July 22, 2014 1 Photo

  • Bice Nurses earn Daisy awards

    CLINTON — Two Clinton nurses recently earned Daisy awards.Mercy Medical Center nurses Jodie Atkinson and Kristen Bice earned the awards that is rewarded to extraordinary nurses. Atkinson began her career in nursing at Mercy Medical Center in 1995 on

    July 22, 2014 2 Photos

  • Revolver goes for $400 at auction CLINTON — Selling in two locations on June 21 proved to be a winner. I was selling in the first location with my son Jon and we had a strong bidding crowd. The second location had Jeff Lohr and Bill McWilliams holding firm with a nice crowd of bidder

    July 19, 2014

  • Sawmill New event cruises into Clinton CLINTON — Three Gateway-area locations are joining together in August for a river heritage event.The event will be held Aug. 3 and will feature a Blue Heron river cruise, a Sawmill Museum tour and a de Immigrant Windmill tour in Fulton, Illinois. The

    July 18, 2014 3 Photos

  • Minnick Ashford director appointed to commission CLINTON —The Ashford University campus director has been appointed to a volunteer commission.Charlie Minnick, vice president/campus director of Ashford University, has been appointed by Iowa Gov. Terry Branstad to the Iowa Commission on Volunteer Ser

    July 18, 2014 1 Photo

  • Summer lunch menus (July 21 to 25)

    Summer lunch menus at Jefferson and Bluff Elementary Schools, and Generations Area Agency on Aging

    July 17, 2014

  • Ax throw, log climb at Adirondack lumberjack class PAUL SMITHS, N.Y. — Ax throwing is encouraged in lumberjack class. It’s also OK to dump your classmate in the lake — as long as you’re both frantically trying to stay upright on a floating log.The annual Adirondack Woodsmen’s School is being held thi

    July 17, 2014

  • Locally-grown foods look to bigger business

    Once a niche business, locally grown foods aren't just for farmers markets anymore.

    July 16, 2014

Front page
Clinton Herald Photos


Browse, buy and submit pictures with our photo site.

Poll

Should the city of Clinton appeal the open records violation ruling that will cost taxpayers $40,600?

Yes
No
     View Results
AP Video
Olympics 2014
Featured Comment
Featured Ads
Blue Zones Project
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.