In the recently convened “lame-duck” session of Congress, senators and representatives will take on a number of issues that could have major consequences for working families and retirees. Congress is considering benefit cuts for Social Security, Medicaid and Medicare and members are looking at cutting taxes for the wealthy even further. Any deal that Congress makes, though, should be based on facts and not the myths that have sprung up around taxes, the deficit and the earned benefit programs. Here are a few of the key myths and the truth behind them.
Myth: Extending the Bush tax cuts for the wealthiest two percent is important because the economy is weak.
Economists agree that cutting taxes on the wealthy is one of the least effective ways to stimulate the economy. A much better use of the $1 trillion cost of those tax cuts would be to invest in infrastructure or extend unemployment benefits.