The Virginian Pilot newspaper article “Super rich keeping more in their pockets” (April 18, 2011) is misleading and is an example of what is wrong with journalism today. The subtitle reads: “Federal Tax Rate has plunged for group with incomes averaging $345 million, and half of American households pay no income tax.” This article conflates several facts in an attempt to lead the reader to a specific conclusion: the so-called “rich” are not paying their fair share, when the opposite is true.
According to the article itself: (1) the top 10% of earners pay more than 50% of all tax revenue ; (2) the bottom 45% of earners pay nothing, even though they enjoy the same benefits as all other Americans; (3) the bottom 50%, on a absolute dollar basis, enjoy the majority of the tax break benefits (interest deduction on mortgages ($77B), earned income tax credits ($55B), child tax breaks ($54B), deducting state and local taxes ($61B)). In fact, the Federal Tax Rate – which is commonly understood to mean the rates at which we are taxed by the federal government — as well as “tax breaks” available have not changed for anyone, including the “rich.” However, because the “rich’s” income has dropped like everyone else's and their deductions have remained constant, their taxes to the Treasury have dropped as a percentage of their income.
I know Americans have a reputation for not being good at math, but this citizen can do simple arithmetic. Call it what you will, but the percentage decline in revenues to the Treasury from the “rich” is not the Federal Tax Rate ... at least not yet.
Subscribe To
Posts
Comments
