The truth is hidden in the assumptions.

I have prepared more than 100 financial plans and taught financial planning in graduate business school at two universities. I learned and I taught that the key to unlocking the secret to any financial forecast is reading the assumptions.

For example, today, an independent organization analyzed Gingrich's tax cut plan. What was their financial forecast? The Gingrich plan would add $1.5 trillion to the deficit.  I am sure the MSNBC pundits will quote the conclusion and overlook the financial forecast assumptions.

The flaw is -- the financial forecast assumed no economic growth spurred by the tax cuts. But of course that is contrary to the basic concept that a cut in taxes will spur economic growth. Now you may disagree with this concept at some level, but does anyone believe that an increase in taxes spurs economic growth? I hope not. If so, we could just send all our money to Washington and wait for the gravy train.

The liberal commentators will shoutcast the $1.5 trillion deficit headline. Gingrich will be compelled to invest hours explaining the connection between a forecast and the assumptions. It is sad.

Readers when you read these financial forecasts by independent organizations, always keep reading until you read  the assumptions.

The assumptions do not make the headlines, but they do make the truth.