NY Post, Politico uncritically reported misinformation by CNBC's Bartiromo about Obama's tax proposals
SUMMARY: The New York Post reported CNBC host Maria Bartiromo's assertion that Sen. Barack Obama would "take the capital gains tax at 15 percent right now all the way up to 25 to 28 percent." The Post further quoted Bartiromo: "Sell anything, like a home or stocks, and make a profit ... [almost] 30 percent of the profit will go to the government instead of 15' " [brackets in original]. But Bartiromo's suggestion that the entire profit on the sale of a house is always subject to tax is false; single homeowners can exempt up to $250,000 in gains realized from the sale of an owner-occupied home from capital gains taxes, and married homeowners can in most cases exempt up to $500,000. Politico's Mike Allen uncritically reprinted the Post report of Bartiromo's comments in its entirety.
In a June 10 article on Page Six, The New York Post reported: "We're in for taxing times if [Sen.] Barack Obama wins the White House, says CNBC's Maria Bartiromo. 'He's going to take the capital gains tax at 15 percent right now all the way up to 25 to 28 percent,' the 'Money Honey' tells Avenue. 'Sell anything, like a home or stocks, and make a profit ... [almost] 30 percent of the profit will go to the government instead of 15' " [brackets in original]. But Bartiromo's suggestion that the entire profit on the sale of a house is always subject to capital gains tax -- which the Post reported without challenge -- is false. Single homeowners can in most cases exempt up to $250,000 in gains realized from the sale of an owner-occupied home from capital gains taxes, and married homeowners can in most cases exempt up to $500,000 in gains.
The Post article also quoted Bartiromo asserting of Obama's income tax plan: "Right now [it] is 35 percent, Obama wants to take that to 39 percent ... We're talking about people who make over $200,000. That's not rich. So it's actually going to impact more people than you may think" [brackets in original]. The blog Think Progress noted Bartiromo's comments in a June 10 post. But contrary to her assertion that an annual salary of $200,000 is "not rich," according to U.S. Census Bureau data for 2006 -- the most recent year available -- only 3.4 percent of U.S. households have an income of $200,000 or more. The median household income for 2006 was $48,451, and the mean household income was $65,527.
In his June 10 "Political Playbook" blog post, Politico's Mike Allen uncritically reprinted the Post report of Bartiromo's comments in its entirety.
From IRS Publication 523:
You can exclude up to $250,000 of the gain on the sale of your main home if all of the following are true.
- You meet the ownership test.
- You meet the use test.
- During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home.
If you and another person owned the home jointly but file separate returns, each of you can exclude up to $250,000 of gain from the sale of your interest in the home if each of you meets the three conditions just listed.
You may be able to exclude up to $500,000 of the gain on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons.
From Page Six on June 10:
June 10, 2008 -- WE'RE in for taxing times if Barack Obama wins the White House, says CNBC's Maria Bartiromo. "He's going to take the capital gains tax at 15 percent right now all the way up to 25 to 28 percent," the "Money Honey" tells Avenue. "Sell anything, like a home or stocks, and make a profit ... [almost] 30 percent of the profit will go to the government instead of 15." The income tax is also in for a bump. Bartiromo says, "Right now [it] is 35 percent, Obama wants to take that to 39 percent ... We're talking about people who make over $200,000. That's not rich. So it's actually going to impact more people than you may think."
I have to look at MM with a critical stance here for
Politico's Mike Allen uncritically reprinted the Post report of Bartiromo's comments in its entirety.
isn't that called accurate reporting ? And Bartirome herself should be held accountable for her basic error ?
Cool, I too can be an accurate reporter. Watch:
On Tuesday June 10, 2008 5:03:56 PM EDT, Wolf Kotenberg said,
"I have to look at MM with a critical stance here for
Politico's Mike Allen uncritically reprinted the Post report of Bartiromo's comments in its entirety.
isn't that called accurate reporting ? And Bartirome herself should be held accountable for her basic error ?"
I'm so good at journalism, I even caught the space before the question mark at the end.
"Sell anything, like a home or stocks, and make a profit ... [almost] 30 percent of the profit will go to the government instead of 15'
Actually she is spot on - I own two rental homes in the Houston area and when I sell them any profits will be subject to the capital gains tax - no exemption.
I am well aware of how my occupied home sale would be effected however when it comes to selling thoes houses she is exactly right. Media Matters found a very small omission in her analysis and is trying to use that to nullify the overall point that Obama's proposed tax increase will heavily burden investors. Those of us who know - know better.
Waaahhhh... when I sell two of my homes, I'll have to pay taxes on the profits. Whatta burden.
You should go whine to some of your tenants about your burden. Maybe they can kick in a little extra with their rent to ease your pain.
pinhead is one word, idiot.
But thank you anyway. I guess it is pretty a "typical" liberal remark to point out the whiny victim mentality of somebody who (I'll assume) owns at least three homes, and is crying that he's a victim.
Typically dead-on accurate, that is !!!
To "Pin Head"
He never "cried" he was a victim, just pointed out the facts. It is the leftist dolts like you that require there be victim to justify tax increases for fairness.
Yeah, well you're a poopy-face!
(two can play at this game)
Stop it, Jawill! Don't add to their heavy burden. I know if I sell my rental property someday, I'm going to be depressed for months over trying to figure out what to do with the money.
Whiny baby victims.
I wouldn't call it a "small omission." Many people are selling their houses, but few people own rental property. Therefore the vast majority of people who read what she wrote will take the wrong impression from it. Conveniently, that wrong impression makes people think that a democratic proposal will negatively affect them when it won't.
BTY, it's great that you own rental property. Why do you think you should pay less taxes on your profit than I do on my earned income?
It is unclear if Obama will eliminate the capital gains exemption on the sale of homes for people making more than $200,000 per year.
Also, in his zest to raise capital gains tax he neglects the fact that Clinton lowered it and it helped the economy and capital gains income increased greatly under W.
Maria was dead on right.
"We're talking about people who make over $200,000. That's not rich. So it's actually going to impact more people than you may think"
according to U.S. Census Bureau data for 2006 -- the most recent year available -- only 3.4 percent of U.S. households have an income of $200,000 or more.
LOL. Is she insane? Doesn't "greater than $200,000" also include people who make millions or billions? What the hell is the middle class to conservatives?
More than 80 percent of all capital gains income went to those making more than $200,000 a year in 2006. Very few making under $50,000 would be affected by any increase in the top capital gains rate.
Most middle-income Americans own much or all of their stock through 401(k)s, IRAs, or other tax-preferred saving accounts. They do not pay taxes when their stocks within those accounts go up, so a change in the tax rate doesn’t affect them.
What also stuck out as a whopper of an exaggeration is Ms.Bartiromo's implication that the current top tax bracket of 35 percent kicks in if you make just over $200,000. In fact, for both singles and married couples filing jointly, that rate doesn't kick in until you make $350,000 after deductions, which means you have to earn close to $400,000 to pay that top rate. And that's rich in anyone's book, except perhaps if you're married to a multimillionaire as Ms.Bartiromo is. You would think that CNBC's "Money Honey" should get such easily documented facts about taxes straight, and that responsible media outlets would not just blindly help spread misinformation, but I guess that's asking too much.
PL