CNN's Henry falsely suggested Obama's tax proposals would affect taxpayers in all income brackets
SUMMARY: On CNN's Lou Dobbs Tonight, Ed Henry falsely suggested that President Obama's proposals to allow the Bush tax cuts to expire and to increase the capital gains tax rate would affect taxpayers in all income brackets. In fact, Obama has proposed allowing the Bush tax cuts to expire -- and increasing the capital gains tax rate -- only for individuals earning more than $200,000 in income and for joint filers earning more than $250,000 per year.
During the March 3 edition of CNN's Lou Dobbs Tonight, senior White House correspondent Ed Henry asserted of tax provisions in President Obama's budget proposal: "[The administration] would insist that it is only a few taxes [being raised]. For example, capital gains tax rates going up from 15 percent to 20 percent. As you know, they're going to let the Bush tax cuts -- at least they're proposing to let the Bush tax cuts expire at the end of 2010." Henry did not explain that Obama has proposed allowing the Bush tax cuts to expire -- and increasing the capital gains tax rate -- only for individuals earning more than $200,000 in income and for joint filers earning more than $250,000 per year.
By contrast, during the February 26 edition of CNN Newsroom, Henry reported that Obama's proposal would "reinstate the 36 percent and 39.6 percent rates for those taxpayers earning over $250,000 -- again, for a married couple." In that instance, on-screen text of the budget proposal also made clear that both the capital gains tax and income tax provisions are limited to individuals earning more than $200,000 per year and married couples earning more than $250,000 per year.
From the March 3 edition of CNN's Lou Dobbs Tonight:
HENRY: And there's been heavy criticism in the last couple days of this president, mostly by Republicans, but by some conservative Democrats as well, raising concerns, as you mentioned, on the hill today with some of those Obama officials about the budget, about the fact that there are some taxes being raised --
DOBBS: Some taxes? Some taxes?
HENRY: -- and there is some spending going up as well.
DOBBS: Did you say some taxes?
HENRY: I did say some taxes.
DOBBS: I mean, my God, that -- that budget is filled with new, higher taxes. It is -- it's off-putting the degree to which Peter Orszag, the president's budget director, is saying that the world will collapse if that isn't immediately passed. The rhetoric of fear has apparently seized this administration, its imagination, as well as its public statements to the point that only a rushed, unthinking approach is acceptable. I mean, this is ridiculous.
HENRY: Well, they would insist that it is only a few taxes. For example, capital gains tax rates going up from 15 percent to 20 percent. As you know, they're going to let the Bush tax cuts -- at least they're proposing --
DOBBS: Yes --
HENRY: -- to let the Bush tax cuts expire --
DOBBS: But it's the same thing again, Ed.
HENRY: -- at the end of 2010.
DOBBS: But, I mean, if I may. This is the same nonsense we've seen with administration after administration, only this one dealing with a real economic crisis. Making these absurd projections on economic growth in the midst of what this president is saying is, you know, approaching a catastrophe economically. It makes no sense at all what we witnessed today -- at least to my view.
Thanks very much.
HENRY: Thank you, Lou.
DOBBS: Ed Henry, at the White House.
From the 1 p.m. ET hour of the February 26 edition of CNN Newsroom:
HENRY: Let's take a look at some of the other taxes that are going to be here. You're going to hear Republicans already talking about them; specifically here: reinstate the 36 percent and 39.6 percent rates for those taxpayers earning over $250,000 -- again, for a married couple.
What does that mean in layman's terms? That means the Bush tax cuts will expire at the end of 2010. And so, you -- those people who were benefiting from the Bush tax cuts will see their tax rates going up a few percentage points.
In Henry's world, everybody makes over 200k per year.
To these guys, 200k is pocket change... tip money.
I'll agree with the pocket change part, but I doubt that any of them are big tippers.
If I were new to watching news and new to this site, I might be inclined to say MMFA is nit-picking a little. HOWEVER, after being bombarded for YEARS by *reporters* CONSTANTLY lying, misinforming, fudging data, making stuff up, not fact checking a goddam thing, etc., it is CRYSTAL CLEAR that mainstream media is a tool for the conservatives and a complete joke.
BTW, I don't watch Dobb's at all- does he always talk like that? I don't have audio, but the transcript reads like he would sound good standing on a soap box addressing some mob forming on the street corner.
Yes, that's how Dobbs talks. He's on in my office every day from 4 to 5, and I constantly get anxious and irritable during that hour with seemingly no instigation - and then I look up at the tv and go "oh."
I'm surprised he hasn't incited more riots. He's awful.
Well, this is just too difficult for those in the media. That is why they like the simple tax codes. Note that they are fairer. Just so that they can understand them.
It's safe to assume that many of these morons in the "liberal media" are in the upper tax brackets and, under Obama's plan, will see their taxes rates return to Clinton-era levels. Many of the most famous media heads are millionaires, so the chances are nil to none that you'll get any objective take from them on Obama's tax proposals.
It will affect all tax brackets. You might not see it in your income tax, but you will see it in price increases on goods and services provided by those who will have their income taxes raised.
Also, nowhere in this report did Henry suggest that "taxpayers in all income brackets" will be affected. The only quote that even came close to that was when he said, "And so, you--those people who were benefiting from the bush tax cuts will see their tax rates going up a few percentage points." How is that not true? If you benefited from the tax cuts and they expire, how are you not affected? He didn't suggest that everyone will be affected. I did, but he didn't.
Well, he repeatedly said "the Bush tax cuts" will expire. But "the Bush tax cuts" won't expire. Some of the tax cuts will expire, the others will continue, and if I'm not mistaken, become permament.
So he was misleading, and there are many people who will say, "the Bush tax cuts" affect me, and they are expiring, thus my taxes will go up. I have seen this brought up repeatedly on blogs - "Obama says the Bush tax cuts will expire. That affects the middle class!" So I know that that interpretation is happening.
Yet another great reason to loweer taxes on the very rich. Remember every time those Republicans gave them a tax break, and the price of everything went down?
The downside to that logic is that every time you limit welfare payments, they just steal your hubcaps and car stereo.
"but you will see it in price increases on goods and services"
I don't recall runaway inflation after Clinton's "Largest Tax Increase in the History of the World"... do you?
ah, the great shibboleth of the conservatives: raise/lower (your favorite here) and investment/employment/prices will go up/down/stay the same! historically (or hysterically, you make the call!), the dire warnings posited by the republicans pretty much never actually come to fruition. taxes are but one small piece of the total "price" puzzle, and a small piece at that.
two clarifications, that you never hear, when discussing this issue:
unfortunately, even with those simplified expalanations, most people still won't understand.
Two very good points CP...
And, of course, two points that are rarely discussed by the chattering heads in the corporate media.
Most are like Ed Henry and Dobbs, busily trying to come up with new ways to deceive ordinary Americans. Most conservatives know, if they're honest (ha-ha), that conservatives can only win through deception.
Well, the facts do have a well known liberal bias. Reality ain't crazy about gops, either.
So help me out here, if conservatives personal income taxes go up, how does it follow that they can justify raising the price of durable and nondurable gooods? Sounds like another childish act of revenge to me.
ya got me! bear in mind, i'm a cpa, and have been in the tax biz for 30 years. unfortunately, the psychology of the economically insane mind was not part of my studies, or continuing prof. education. in short, why companies would raise their prices, in response to an increase in personal income taxes, is a total mystery.
That's why it's so adorable when wingnuts like JBeagle come here regurgitating the chants their wealthy masters have programmed into them.Complete fiction, serving the rich, and distributed by suckers who probably live paycheck to paycheck.
I'm still waiting for one of the dittobots here to give me a real life example of one of their favorite Gospels;The employer who gets rid of an employee, or eliminates a job,or shuts down a business, because of taxes.It's like they have a completely different math than Earthlings.
Here's another great story I'd like to see a real-life example of:"What do you think attorneys or dentists or anyone that reaches the $250,000 mark is going to do? They are going to curtail business(hurt the economy) to avoid crossing the $250000 threshold."
Cpinva brings up something I didn't think about there, that it's taxable income and not gross income anyway. It boggles the mind that anyone making over $5K a week is going to be keeping daily track of their earnings (with deductions for the entire year already in the equation, somehow) to make sure they don't go over $250K of taxable income (and make sure they wouldn't earn enough to cross through the overlap and come out ahead of where they would be if they were to "curtail business"). It's not like someone's going to quit work for three months because they don't want to cross that line.
Actually, People DO work less so that they stay under a cetain tax bracket. I personally make just below the next tax bracket line. When I switched my job last. I told them that instead of more pay, I wanted stock options, more vacation time, etc. I know at least two people that do the same. Why make more if your gonna be taxed more? I happen to agree with Jbeagle. I understand you disagree cpinva, but wait and see what happens with the economy. If the bailouts, the stimulus (Secret Pork) bill and the tax increases on the wealthy, help the economy, then I will say conservatives are wrong, but from what the Stock market is doing, you would think that the current administration is making all the WRONG moves.