Falsehood #1: In the year 2000, the government had a budget surplus, but instead of using it to pay off our debt, the money was used to pay off new tax cuts.
Why it's false: After tax cuts in 2003, from 2004 to 2007, federal tax revenues increased by $785 billion, the largest four-year increase in American history. (Even with the recession, 2008 revenues exceeded 2000 revenues by $1T.)
Falsehood #2: The recession meant less money was coming in, and it required us to spend more.
Why it's false: The government spent $278K per job created. In March, 2009 US underemployment stood at 15.6%. In July of 2011, US underemployment stands at 18.7%. This outcome does not substantiate this need.
Falsehood #3: ...if nothing is asked of the top of the income scale.
Why it's false: The top 1% income earners pay greater than 40% of total US government revenue. The bottom 95% pay less than 60% of the total US government revenue.
Falsehood #4:Republicans in the house are insisting on a cuts-only approach.
Why it's false: The House of Representatives passed a bill entitled Cut, Cap, and Balance. It raises the debt ceiling by $2.4T, as requested by the Democrats.
Falsehood #5: Most Americans don't understand how we can ask a Senior citizen to pay more for her Medicare benefits before we ask a corporate jet owner or the oil companies to give up tax breaks that other companies don't get.
Why it's false: The oil companies benefit from a $4B per year tax credit. Eliminating the corporate jet loophole would increase government revenue by $3B over the next decade. The federal debt is >$14T. If the US government collected 100% of income earned above $250K/year, 100% of all fortune 500 company profits, and 100% of the assets owned by individuals worth $1M or more, the US government could only pay for January through August of the 2011 budget. Loopholes aside, the rich pay their fair share.
Falsehood #6: If [a spending cuts only approach] happens and we default, we would not have enough money to pay all of our bills, bills that include monthly social security checks.
Why it's false: Social security has a trust fund and revenues capable of funding all social security checks through the end of President Obama's current term. A prioritization of loan payments avoids a default of any kind, which the government has sufficient revenue to pay without a debt ceiling increase.
Falsehood #7: Our AAA rating would be downgraded. Interest rates would skyrocket.
Why it's false: See answer to falsehood #6. Side Note: The US risks a loss of it's AAA rating and skyrocketing interest rates with an increase of it's debt to GDP ratio, which a debt ceiling increase will cause.
