There have been some real tax myth doozies posted at ATS and either some people haven't seen the facts, refuse to believe the facts, or are just
straight up lying about the facts. In order for a real debate on tax policy to take place, we have to dispel the lies first.
1. Obama is planning the largest tax increase in history.
The plan is to let the Bush tax cuts for just the top bracket of tax payers to return to 1999 levels. That would mean an increase for the richest to
pay 35% instead of the current 33%. As recently as August 1,
Sarah Palin parroted
this lie on Fox.
And she got a flaming
Pants On Fire
rating from Politifact. This 2% increase is the origination of him being
labeled a socialist.
2. Obama will raise everybody's taxes.
Obama said that 98% of Americans would NOT see a tax increase under his plan, and that's
As recently as this month an editorial in the
ruse. Obama's proposed FY 2011 budget
Budget eliminates the Bush tax cuts for those making more than $250,000 a year and devotes those resources instead to reducing the deficit.
you make under that, you're safe. Case closed.
3. An increase of taxes on the top 2% would hurt small business
This one was started by McCain in his July 7th
during the '08 campaign. It has been repeated all the way up to this month when Sen Orin Hatch called it a "job killing take hike". I
looked at Factcheck.org
and according to Urban-Brookings Tax
Policy Center the number of small business owners that make over $250,000 filing married or $200,000 filing single is 663,608 out of 26.8 million.
That is roughly .25%, or one quarter of one percent. Is it safe to say it is NOT a job killing tax hike? Absolutely.
4. The bottom 50% need to pay their fair share of the taxes.
While it is true that the bottom 47% escaped paying
this past year they still paid in on payroll taxes, state and local taxes, capital gains taxes, and so forth. They escaped paying
Federal income taxes for one because they make such little income and because of a program created by Richard Nixon and expanded by both Ronald Reagan
and Bill Clinton, from an idea came from legendary conservative economist Milton Friedman, called the
Earned Income Tax Credit
the top 1% of Americans owned 33.8% of the wealth while the bottom 50% held 2.5%.
So ask yourself this, would taxing that 2.5% really put a dent
in tax revenues? Be honest.
The bottom 50% have less money and still pay a higher percentage of it in taxes than the rich do. According to a report by
Citizens for Tax Justice
, "Claims that the richest one percent are paying far more than their fair
share usually focus only on one type of federal tax paid (the federal income tax) while ignoring other regressive federal
taxes, like the payroll tax, which is more significant for most taxpayers. They also ignore state and local taxes, which tend to tax low- and
middle-income families more heavily than well-off families. As these figures make clear, the richest Americans are not being “overtaxed” relative
to other Americans or relative to their share of national income."
The top 1% pays 30.9% of their income in taxes.
The next 4% pays 32.1%
the next 5% pays 32.2%
the next 10% pays 31.5%
the next 20% pays 30%
the next 20% pays 27%
the next 20% pays 22.3%
and the poorest of the poor with an income of $12,000 or less pays 18.7%.
All pretty even until you get to the poorest. Anyone who says they should pay 30% as well should try living on $12,000 a year and see why they
5. Tax cuts for the wealthy creates jobs.
Unfortunately for liars, numerical facts exist. Since "trickle Down Economics was conceived in the early eighties, private sector job growth was at
31%. In 2001 the private sectors were creating only 23% of the jobs,
by 2009, it's at 1.1%
. But wait, I thought
rich people create jobs. No, they don't. They took their tax breaks and kept all the money, all while saving a few more bucks by shipping American
Now that you are "in the know' as far as taxes and the Bush tax cuts are concerned, we can all have logical debate on this subject. For those who
catch a poster typing one of these tax tales, refer them here.
Down below I posted a chart showing the lopsided Republican tax plan and how it definitely benefits the rich the most. If you make one million dollars
you will save more than the bottom 50% make ALL YEAR!!!
[edit on 16-8-2010 by 12GaugePermissionSlip]