Media Matters – the Soros and taxpayer funded website dedicated to the reelection of Barack Obama – has taken issue with my column in last Saturday’s Atlanta Journal-Constitution on the issue of tax cuts and revenue.  In that column I pointed out that the Congressional Budget Office said that the Bush Tax Cuts would cute 2006 federal tax revenues by $75 billion, but instead they increased by $47 billion. 

Here’s the rebuttal from Media Matters.  The link is included so that you can read the rebuttal and compare it with my comments below.  Media Matters doesn’t play the game that way when they quote me from my show. 

You will note that in the Media Matters rebuttal they make constant references to the CBO.  You’ll see phrases like “estimated impacts,” “Estimates based on economic and technical assumptions” used by the CBO, “using up-to-date assumptions,” estimates prepared by the CBO,” “based on projections by the CBO,” “According to these same projections.”  No facts … just projections, assumptions and estimates.  Nowhere in the Media Myrmidons response to my article did they actually refute the fact that; (1) the CBO said revenues would be cut by $75 billion; and (2) Revenues actually increased by  $47 billion.   

Always remember this --- I keep reminding you, but maybe this fact will bury itself into a few more minds this time --- by law the CBO is not allowed to consider changes in taxpayer behavior when taxes are increased or decreased.  The CBO is required to adopt a static view of changes in tax rates --- that static view being that taxpayers will not change their economic behavior no matter how high or how low the tax impact on that behavior.  You and I both know that this assumption is ridiculous – but it does give politicians an out when they want to misrepresent the negative impacts of tax cuts.