A Fox Business correspondent claimed that it was better to forgo nearly $3 million in additional prize money than to pay the roughly $400,000 in taxes due on it, representing a continuation of the baseless Fox News narrative that the rich have unduly high tax burdens.
Professional golfer Phil Mickelson placed second at June's U.S. Open golf tournament. Fox Business correspondent Lauren Simonetti argued on June 19's edition of Fox & Friends First that it may have been better for Mickelson to have lost the tournament and place second, for he would avoid paying nearly $400,000 in additional taxes.
She explained that had Mickelson won the tournament -- and won the $1.44 million first prize -- he would have had to pay an additional $76,000 more in taxes than he paid by placing second and receiving $700,000. Mickelson would have also had to pay an additional $300,000 in taxes on $2.5 million in bonuses paid to him by his sponsors, had he won. She concluded it's better to avoid paying roughly $400,000 in taxes than to win nearly $3 million in after-tax income. Simonetti said this made Mickelson "$400,000 richer."
This conclusion may stem from Fox's zealotry against additional taxes for the rich: the rich, because of their supposed onerous tax burden, need lower taxes in order to continue amassing wealth, or else they may stop working.
The idea that the wealthiest Americans have a disproportionately high tax burden is a fabrication Fox has pushed for years. However, a February 15 New York Times article reported that incomes for top earners rose more than 11 percent during the recovery from the most recent recession, while the rest saw their incomes decline slightly. As Nobel Prize-winning economist Joseph Stiglitz noted in an April 14 New York Times Opinionator blog post, "as the top 1 percent has grown extremely rich, the effective tax rates they pay have markedly decreased." The Center for Tax Justice (CTJ) found that the effective tax rate -- a rate including all federal, state and local taxes paid -- for the wealthiest Americans is not much higher than the effective tax rate for middle class Americans:
In the same report the CTJ found that the precentage of all taxes paid by the wealthy is near the amount of all national income captured by the wealthy.
From this fabrication, Fox has argued that the supposedly high tax burden will make the rich not work or might seek lower taxes in different states. In September 2011, Fox News host Bill O'Reilly equated earnings to achievement and claimed that "if you tax achievement, some of the achievers are going to pack it in." And in September 2010, Fox & Friends co-host Brian Kilmeade argued that high levels of taxation, to the wealthy, "robs you of your ambition and your push and your drive."
However, the rich have not been doing this. As Reuters reported, millionaires in high tax states, such as Mickelson's home state of California, have not left the state for low-tax alternatives. Mickelson himself suggested in January he may quit golf due to California's income taxes, walking back the statement a day later. If the 2013 U.S. Open results are any indication, Mickelson is still playing golf, presumably because after taxes he still earns millions and because he doesn't take financial advice from Fox.
Right-wing media have repeatedly used dishonest and misleading charts from Sen. Jeff Sessions (R-AL) to decry spending on nutrition assistance and other programs for needy Americans.
Fox News, Fox Nation, and The Weekly Standard have, over the course of many months, taken charts from Sessions' staff depicting spending on food stamps (also known as the Supplemental Nutrition Assistance Program, or SNAP) and other spending on low-income Americans in grossly misleading ways with out-of-context numbers. On June 12, Fox & Friends First cited Sessions when airing a graphic showing spending on SNAP being more than five times greater than spending on veterans job training and education programs:
Similar charts appeared on Fox Nation and The Weekly Standard. The Congressional Budget Office (CBO) projection that is cited on the graph does not list any spending on veterans job training and education, so that number cannot be verified. But the White House projects that spending on this program will increase over the next five years, after it already grew dramatically after 2009 -- while spending on SNAP is projected to decrease over the same five-year period.
But it is ridiculous to compare a veterans education program -- which is limited to only military veterans and thus a very small segment of the population -- to SNAP, which is an income security program (indeed, it is listed as such in the CBO document) and is open to every American that meets eligibility requirements. And many veterans and their families are eligible for SNAP and active-duty service members and their families use the benefits. But if one was to look at income security spending for veterans, CBO projections show that more is actually spent on veterans -- a total of $801 billion on income security for veterans over 10 years, and a much larger amount than the veterans program highlighted by Sessions and the right-wing media.
During the segment, Fox Business' Diane Macedo noted that "the USDA also provides bonuses totaling about $50 million per year to states that meet high enrollment targets." These awards, which Sessions brought up on Fox News in June 2012, date back to the Bush administration, and have their origin in the 2002 farm bill.
Fox News used a flawed study to falsely claim that the Affordable Care Act (ACA) will increase health insurance market premiums by 88 percent in the state of Ohio, ignoring the counter effect of the premium tax credit subsidy and deceptively suggesting that premium increases will affect the state's entire population.
Fox News continued its campaign to demonize welfare benefits, this time hyping improper payments made by a Massachusetts program even though those payments made up only a minimal amount of all benefits paid by the state.
On Fox & Friends First, co-host Patti Ann Browne hyped a report that Massachusetts welfare agencies had improperly continued to provide a total of $2.39 million in assistance to 1,164 deceased recipients, calling the figures "ugly." On Fox & Friends, co-host Brian Kilmeade mocked the report, claiming, "More than 2 million dollars. That's the amount of welfare benefits paid out recently to nearly 1200 dead people in Massachusetts. They could not be reached for comment." A FoxNews.com article called the audit of the agencies "damning."
But according to the audit, improper payments to deceased individuals made up only a tiny amount of total assistance payments made by the state. Massachusetts' Department of Transitional Assistance (DTA) spent more than $1.7 billion in benefits in fiscal year 2012 alone for a variety of financial assistance programs including the Supplemental Nutrition Assistance Program (also known as SNAP, or food stamps) and emergency aid to people with disabilities and children. The audit found only $2.39 million dollars improperly paid to deceased recipients for the entire time period from July 2010 to December 2012.
Furthermore, the audit found that Massachusetts has already taken steps to reduce the small number of improper payments in these programs, and according to the official press release, the auditor was "encouraged" by DTA's actions.
Fox News has a history of attacking programs for Americans in need. Fox News hosts have tied government assistance programs to the terror attacks committed at the Boston Marathon, mocked food stamps as a diet plan, claimed all individuals who receive government disability benefits are faking their disabilities, and even asked whether children should have to work in exchange for free school meals.
Amid reports that former State Department spokesperson Victoria Nuland was nominated by President Obama to a higher post, Fox News immediately engaged its smear machine to launch a false attack on her, claiming she had misled Congress and the American people about terrorist groups possibly involved in the attack on a U.S. diplomatic facility in Benghazi, Libya.
Politico reported on May 23 that Nuland, who had been "involved in the editing of the administration's talking points on Benghazi," was nominated by Obama to be the assistant secretary of state for European and Eurasian affairs, a position that requires Senate confirmation. Politico also reported the nomination "could come under scrutiny from Republicans" for her input on the administration's unclassified talking points on the terrorist attack in Benghazi.
Fox News jumped on the news to smear Nuland and continue its long-running attempt to promote Benghazi as a devastating scandal. On May 24, Fox's early morning show Fox & Friends First said that Nuland is "accused" by unnamed people of "misleading Congress and Americans." Co-host Patti Ann Browne continued:
BROWNE: The State Department spokesperson who played a key role in editing the talking points on the Benghazi terror attack is getting a promotion. President Obama has nominated Victoria Nuland as Assistant Secretary of State for Europe. She's accused of misleading Congress and Americans by downplaying the role terrorists played in that attack. This comes as the investigation deepens; several lawmakers are pushing to interview 13 top State Department officials, including former Secretary of State Hillary Clinton.
On Fox & Friends, guest co-host Anna Kooiman suggested that Nuland was "being promoted for politics," and asked, "where's the accountability?" The following graphic aired during the segment:
But recently released administration emails which document the process of drafting the Benghazi talking points show that it's Fox News that is being misleading.
Fox News and Fox Business previously portrayed electric carmaker Tesla Motors as another "failure" of the Obama administration's green energy investments. But since it is now clear that the company is doing well, both networks have developed amnesia about its federal loan, with Tucker Carlson claiming that "they don't take any government subsidies at all."
Tesla recently reiterated its plans to repay a loan granted through the Department of Energy's Advanced Technology Vehicle Manufacturing program ahead of schedule. This followed a series of positive developments, including the company's first quarterly profits and a shining review of the Model S sedan by Consumer Reports. Financial services firm Morgan Stanley recently told Raw Story that "Many funds approach an investment opportunity by first asking: does the company do something better or cheaper than anybody else? Tesla is beginning to convince the market it may do both."
But no matter how Tesla fares in the coming years, it seems likely that Fox News will change its reporting to follow suit. In 2012, Fox News' claim that Tesla was a "failed" company was eventually adopted by the campaign of then-presidential candidate Mitt Romney. Later, Fox News admitted Tesla was a "success", eventually forgetting its federal loan in the process.
Video created by Max Greenberg and John Kerr.
The success of Tesla Motors complicates Fox News' narrative about green energy investments, but the network has a strategy: simply ignore the fact that the company received a federal loan.
Tesla, a leading electric automaker, received a $465 million loan guarantee from the Department of Energy's Advanced Technology Vehicles Manufacturing (ATVM) program in 2010. The company has since become a fixture in car magazines and one of the most conspicuous successes of the Obama administration's green energy policies, recently announcing that it intends to pay back the loan five years ahead of schedule and reporting its first quarterly profits. On the heels of the latter news came word that the notably tough reviewers at Consumer Reports had given the Tesla Model S sedan a 99 out of 100 rating, proclaiming "we've never seen anything quite like the Model S. This car performs better than anything we've ever tested before."
On Friday, Fox News reported the quarter one profits -- "encouraging" -- and the positive review, pronouncing the automaker a "huge success."
One major problem: somehow, Fox News neglected to mention the federal loan guarantee program that helped Tesla obtain vital capital to develop the Model S. By contrast, Fox News has repeatedly used a negative Consumer Reports review of Fisker's hybrid electric Karma sedan as a hook to attack the Obama administration's green loans, without mentioning successes like Tesla or the money that Congress set aside to cover losses, knowing that not every company would succeed.
Fox News stoked fears of terrorism to attack immigration reform while failing to acknowledge that the Senate's proposed immigration legislation includes provisions to bolster security measures.
The Washington Post reported the suspects in the Boston Marathon bombing legally immigrated to the United States as political refugees. Fox News personalities responded by attacking immigration reform and stoking fears of terrorism, going so far as to suggest that visitors from certain countries and regions be banned from entering the United States.
On the April 30 edition of Fox & Friends First, co-host Heather Nauert continued Fox's pattern of using the Boston Marathon bombings to attack immigration reform and stoke fears of terrorism, asserting that terrorists are "being granted tourist visas." She went on to claim that certain individuals were "overstaying" those legal limits, and asked: "Why isn't there a plan in place to catch that?"
NAUERT: Critics say it is a gaping hole that Washington needs to fix, and fix right now ... And let's remember some of those 9-11 hijackers were here on student visas and overstayed those student visas as well.
During the report, on-screen text falsely claimed the Senate's immigration reform proposal "gives no solution" to individuals overstaying their immigration visas:
In fact, the number of legal immigrants overstaying their visas declined by 73% between 2000 and 2009, thanks to the Department of Homeland Security's enhanced security measures in the years following the September 11, 2001 attacks. The immigration reform bill introduced in the Senate on April 17 is designed to speed that decline by implementing what Republican Senator Marco Rubio called "an effective entry and exit system."
Responding to questions about enforcement and temporary visas in the wake of the Boston Marathon bombing, Department of Homeland Security Secretary Janet Napolitano described how provisions in the Senate immigration reform bill would "give us more measurements, more metrics, more identities, more things that we can use from a law enforcement purpose."
Boston bombing suspect Tamerlan Tsarnaev "initially escaped the notice of federal authorities on a six-month trip to Russia last year because his name was misspelled on his airline ticket," The Washington Post reported. But Napolitano pointed out that the proposed electronic monitoring system is designed to specifically address that problem, as it "does a good job of getting human error, to the extent it exists, out of the process."
CBS News reported that the bill's "modernized visa system" would monitor "the future traffic of immigrants during both departure and arrival to ensure that nobody overstays their welcome." The summary of the bill's framework further details that the success of the full proposal is "contingent upon our success in securing our border and addressing visa overstays" and requires "the completion of an entry-exit system that tracks whether all persons entering the United States on temporary visas via airports and seaports have left the country as required by law."
Fox News forwarded the notion that it might be appropriate for school children to be forced to work in exchange for free school meals, after a Republican lawmaker in West Virginia proposed such a requirement for a new law curbing child hunger.
On Fox & Friends First, on-screen text asked viewers whether students should have to "work for their school meals":
As The Washington Post blog "She The People" explained, the idea that students could be forced into labor in exchange for food comes from a Republican member of the West Virginia House of Delegates, who suggested the requirement be added to a bill intended to ensure no child goes hungry:
"I think it would be a good idea if perhaps we had the kids work for their lunches: trash to be taken out, hallways to be swept, lawns to be mowed, make them earn it," said Ray Canterbury, a Republican from Greenbrier and a member of the West Virginia House of Delegates, during debate over Senate Bill 663, also known as the Feed to Achieve Act.
The bill -- the first of its kind in the nation -- would create a partnership between private donations and public funds to make breakfast and lunch available for free to every student, kindergarten through high school senior, in West Virginia. It's based on a model program in Mason County that's improved attendance and decreased discipline problems, according to the school district's food service director.
Free meals are provided through the National School Lunch Program to students whose family's income is 130 percent or less of the federal poverty guidelines. For this past school year, that means a family of four with an annual income of $29,965 qualifies. Children with household incomes of 185 percent or less of the poverty guidelines can get reduced-price meals under the program, which -- I was surprised to learn -- was established in 1946 by the National School Lunch Act.
West Virginia's Feed to Achieve Act wants to go beyond that by making sure no child goes hungry at school, but Canterbury repeated the theme of "there is no such thing as a free lunch" during the delegates' discussion of the bill, which had passed the state Senate unanimously.
Fox News spent an entire week hyping a supposed "War on Easter," pointing to the decision made by a few school boards to hold "Spring egg hunt[s]" instead of Easter egg hunts. In seven days, Fox devoted 10 segments to what host Bill O'Reilly called the continued "war on Judeo-Christian tradition."
On March 21, O'Reilly lambasted President Obama and the White House for empowering "secular progressives" to pressure school districts around the country to eliminate terms like "Easter bunny" and "Easter egg." O'Reilly complained that "the war on Judeo-Christian tradition continues in some public school districts," citing districts in five states that he said "are having Spring egg events. Moderated by a Spring bunny":
O'REILLY: I know it's stupid. You know it's stupid. But it's happening, and there is a reason why it's happening. Secular progressives are running wild with President Obama in the White House. They feel unchained, liberated and they are trying to diminish any form of religion. The goal is to marginalize religious opposition to secular programs.
In the past week, several Fox shows followed O'Reilly's lead, airing segments that criticized the "P.C. police" and focused on "assaults" that have put Christianity "on the run in this country":
President Obama has nominated Thomas E. Perez as Secretary of Labor. Right-wing media used this announcement to push false attacks about Perez based on his service in the Justice Department's Civil Rights Division and other civil rights work and advocacy.
Fox News parroted the accusation that Thomas Perez, a possible Labor Secretary nominee, "worked with hardcore Islamist groups" and approved of efforts to weaken airline security measures, but that accusation is based on comments Perez made at an interfaith conference where he emphasized the need to respect civil rights when improving security protocols.
The Los Angeles Times reported on March 10 that President Obama is likely to nominate Perez for Secretary of Labor. He is currently the assistant attorney general for the Justice Department's Civil Rights Division, and has been repeatedly vilified by Fox News.
On Fox & Friends First, co-host Patti Ann Browne claimed Perez has a "controversial past" and was "said to have worked with hardcore Islamist groups and applauded those who lobbied against airline security measures."
Browne did not cite evidence for her claim, but her criticism echoed a Daily Caller piece from July 2012 that claimed Perez attended a meeting in D.C. in October 2011 with "hardcore Islamists" and "complimented the Islamists for lobbying against airline security measures," almost the exact words used on Fox & Friends First.
Perez's full remarks from the October 2011 meeting reveal he praised the work done by faith leaders around the country to help combat discrimination based on national origin in airport security screenings.
Perez spoke at the October 2011 Civil Rights Summit hosted by George Washington University Law School on Arab, Muslim, Sikh, and South Asian Americans experiencing discrimination and hate crimes following the September 11, 2001 attacks. The event was attended by faith leaders and advocates from many religions, including an imam and a rabbi.
While there, Perez thanked the audience for giving the Department of Justice and the Department of Homeland Security feedback on airport safety protocols, producing more effective measures that used "a scalpel, not a meat ax" to identify threats and emphasizing the need to protect civil rights:
I talked about reflection and recalibration and let me give you two examples of the need for continuing reflection and recalibration. You may recall the Christmas Day attempted bombing on the airplane. And you will recall the aftermath of that bombing in which certain protocols were put in place that made categorical targeting, that is to say, individuals from certain countries, were categorically being asked a series of additional questions. What did we hear in the aftermath of that? We heard a lot of feedback from people in this room and leaders across the country that we could do a better job. That we should be using a scalpel, not a meat ax. And that we should reconsider what's happening.
And a few months later, as you know, and thanks to you, we did just that. And the Department of Homeland Security recalibrated what it was doing, and I think as a result, it was a more effective mechanism. Because once again, we must always remember, as Jim Cole told us this morning: Don't fall into the trap of thinking that it's either safe streets, secure borders, and secure communities or protection of civil rights and civil liberties. It will always be both.
Fox News misleadingly claimed the hamburger chain Five Guys planned to raise prices as a result of President Obama's health care law, though only one franchise owner has announced plans to raise prices at his eight restaurants and Five Guys has publicly stated he does not represent the company.
Fox & Friends First host Heather Childers claimed "Five Guys says it is going to have to raise prices on its famous food to cover the added cost" of the health care law. The following image aired during the segment:
The Washington Examiner reported an individual franchise holder, Mike Ruffer, planned to raise prices at his eight outlets in one North Carolina area in order to meet the requirement of the new law that all of his full-time employees have access to health insurance.
The Huffington Post contacted Five Guys about Ruffer's announcement and received a response from the restaurant chain's public relations director Molly Catalano that Ruffer is an independent business owner and "does not represent Five Guys on this or any other subject matter."
Fox News misleadingly invoked the 9-11 terrorist attacks to pillory President Obama's immigration policy, falsely claiming that the hijackers entered the United States illegally, and therefore would not have been arrested had they been detained in 2001 under Obama's immigration policy.
Citing a former Bush Immigration and Customs Enforcement official's February 2012 congressional testimony, Fox & Friends First co-host Ainsely Earhardt claimed that Obama's immigration policy would have allowed the perpetrators of the September 11, 2001 terrorist attacks to remain in the United States had the policy been in effect in 2001, claiming his "policy prevents agents from arresting people solely for entering the country illegally."
However, the 9-11 hijackers did not enter the country illegally, so any immigration policy changes dealing with people entering the country illegally would not apply. The National Commission on Terrorist Attacks reported that the hijackers entered the United States legally via visas issued by the State Department:
Beginning in 1997, the 19 hijackers submitted 24 applications and received 23 visas. The pilots acquired most of theirs in the year 2000. The other hijackers, with two exceptions, obtained their visas between the fall of 2000 and June 2001. Two of the visas were issued in Berlin, and two were issued in the United Arab Emirates. The rest were issued in Saudi Arabia. One of the pilots, Hani Hanjour, had an application denied in September 2000 for lack of adequate documentation. He then produced more evidence in support of his student visa application, and it was approved.
And while several of the hijackers had overstayed their visas, the Obama administration has taken steps to crack down on those who stay when their visas expire, focusing on security risks. From an Associated Press report in September 2011:
The Obama administration is cracking down on immigrants in the U.S. who have overstayed the terms of their visas by using a system that automatically checks multiple national security, immigration and law enforcement databases at the same time, a senior Homeland Security Department official said.
The common practice has been to make manual checks of individual databases. The new system already has identified dozens of investigative leads, said John Cohen, deputy counterterrorism coordinator at the Homeland Security Department.
The immediate focus is to identify people who have overstayed their visas and who pose potential threats to national security or public safety, Cohen said.
The department also is checking regularly the systems for people whose visas have not expired -- in some cases, as often as daily or weekly, Cohen said.
Such a review process deals with the reality that information about a person's potential terrorism ties might not be clear to the intelligence community until after a visa has been issued.
A Fox News report dishonestly pegged a decline in median household income to the beginning of President Obama's first term. In fact, median income has trended downward since 1999.