To hear the media report it, President Obama is proposing a tax increase on wealthy Americans. That's misleading at best. He's proposing that everyone -- including the rich -- receive a continuation of the Bush tax cuts on the first
Get it? Everyone is treated exactly the same. Everyone gets a one-year extension of the Bush tax cut on the first
Yet some people apparently are determined to mislead the American public about this. The editorial writers of the
The Journal's editorial writers also want Americans to think the president's proposal would hurt "tens of thousands of job-creating businesses."
A small-business owner earning
All told, fewer than 3 percent of small business owners would even reach the
A third misleading statement is that Obama's proposal will "increase uncertainly and further retard investment and job creation," as the Journal puts it.
Don't believe it.
The real reason businesses aren't creating more jobs is American consumers -- whose purchases constitute 70 percent of U.S. economic activity -- don't have the money to buy more, and they can no longer borrow as before. And the reason they don't have the money is median wages keep dropping, largely because businesses keep whacking payrolls. Yet businesses won't invest and hire more workers without enough sales to justify the added costs.
The only people who'd have to pay substantially more taxes under Obama's proposal are those earning far in excess of
In fact, most of these wealthy people's income is unearned -- capital gains and dividends that are now taxed at only 15 percent. If the Bush tax cuts expire on schedule, the capital gains rate would return to the same 20 percent it was under Bill Clinton.
But what's so bad about the Clinton tax rates anyway?
I don't remember the economy suffering under Bill Clinton. I was in Clinton's Cabinet, so perhaps my memory is self-serving. But as I recall, the economy generated 22 million net new jobs during those years. Unemployment fell dramatically, and almost everyone's income grew. Poverty dropped as the economy soared.
In fact, the Clinton years generated the strongest and best economy we've had in anyone's memory.
In sum: Don't fall for these untruths -- that Obama wants to extend the Bush tax cut only for some people, that small businesses will be badly hit, that businesses won't hire because of uncertainty this proposal would create, or that the Clinton-era tax levels crippled the economy.
It's not just the lofty editorial pages of the
The truth is already a casualty of this election year. That's why it's so important for you to know it and to spread it.
Read the latest political news.
- Romney Opens Mouth, Only to Make a Joke of Himself
- Green Scissors for Congress
- The Truth About Obama's Tax Proposal (And The Lies Some are Telling About It)
- Mitt Romney Stays Mum on Tax Avoidance
- Condi Rice Rumor Reveals Divisions in Romney Camp and on the Right
- The African-American Swing State
- Mitt Romney's Tour Starts in Wrong Place
- Teen Assailed for Outgrowing Conservatism
- Obama's Outsourcing Ad is Demagogic Populism
- Campaign on Cruise Control
- Mitt Romney's No-Brainer
- No Loonies Need Apply for GOP Vice-President
- Mitt Romney's Veepstakes Mania
- Mitt Romney's Hidden NAACP Audience
- The Subject Straight-Shooting Mitt Romney Doesn't Dare Address
- The Sham Battle For The Black Vote
- Mitt Romney and the NAACP
- Mitt Romney's Hysteria Bubble
- Our Voting Rights: Protect Them, Don't Reject Them
- A New Kind of Scrutiny on the Campaign Trail
- Older Voters' Disapproval of Affordable Care Act Selfish
- Affordable Care Act: Lifesaving Law
- The 'Freedom' to Refuse Health Insurance
- Shameless Tax Loopholes
- 7 Habits of Highly Ineffective Government
- Co-sponsoring Your Success
- The Escalator of Success (Next Time Take the Stairs)
- Weeding Out Phony Warriors
- The Numbers Game
- The Stossel Solution
- The War on Soda Pop
- Cutting Pentagon Fat
- Don't Expand NAFTA
- 21 Trillion Dollars Hidden in Tax Havens
- The True Meaning of Patriotism
- Year of the Gaffe
- Sabotaging Montana's Campaign Finance Legacy
- Taxing Mitt Romney's Consistency
- Mitt Romney's Worst Enemy
The Truth About Obama's Tax Proposal (And The Lies Some are Telling About It) | Politics
(c) 2012 Tribune Media Services, Inc.