Class Warfare Fact and Fiction: Century Foundation Series Debunks Myths that Fuel Economic Policy Debate

3/5/2003

From: Christy Hicks of The Century Foundation, 212-452-7723; e-mail: hicks@tcf.org web: http://www.tcf.org NEW YORK, March 5 -- After President Bush unveiled his new proposal to cut taxes (over and above his larger tax cut, enacted in 2001 and still unfolding) media stories and commentary about the plan conveyed confusing and often contradictory information. For example, few stories mentioned the fact that the reported costs of the cuts in income taxes - estimated to run more than $600 billion over 10 years - fail to include additional interest costs, which raise the total to $900 billion. Compounding the public's difficulty in comprehending the complex proposal has been the introduction of the incendiary phrase "class warfare" to attack opponents. This rhetoric implies that it is inappropriate to assess who would benefit the most and least under the plan because we must not think about our society along economic lines. The effect of the "class warfare" language has been to put on the defensive anyone who even mentions fairness. Regardless of language, any major policy proposal will affect different groups in different ways, and evaluating those impacts helps the public reach judgments about whether to support the plan. To help correct myths and misleading claims that have appeared in the media during the current "class warfare" debate, and to defend the idea that we must consider the fairness of economic policy, this series provides basic facts that demonstrate why particular assertions are wrong. Bernard Wasow, senior fellow and senior economist at The Century Foundation, is the author of the series. He is available for interviews and backgrounders. This series is available on The Century Foundation website at http://www.tcf.org/Publications/Issue_Briefs/ClassWarfare/intro.p df. For further information or to schedule an interview please contact Christy Hicks at 1-212-452-7723 or hicks@tcf.org. New this week: Myth No. 4: Over the course of lifetimes, Americans are highly likely to enjoy upward economic mobility Other titles in this series (available at http://www.tcf.org): Myth No. 3: Stock ownership and other wealth is much more evenly distributed today than it was in the past, so cuts in taxes on investment income benefit everyone Myth No. 2: Cutting taxes on dividends and other capital income will generate new investment essential for economic growth. Myth No. 1: The rich deserve most of the tax cuts because they pay most of the taxes. --- The Century Foundation is a research foundation that undertakes timely, critical, and analytical studies of major economic, political, and social institutions and issues. Nonprofit and nonpartisan, TCF was founded in 1919 and endowed by Edward A. Filene.