Allison Kilkenny: Unreported

DeMint: The Richest 0.7 Percent of the Population is “Lots of People”

Posted in class divide, Economy, politics, wealth divide by allisonkilkenny on February 25, 2009

Matthew Yglesias

The right-wing is flinging smokescreen rhetoric about income taxes and small businesses so quickly that it’s difficult to keep track of what they’re saying. But the important things to recall are that very few people find themselves in the top two tax brackets, and that though some of these people are small businessmen they’re paying taxes on net income. These are brackets for a small number of unusually prosperous people. For example, here’s Jim Demint:

It looks like he’s gonna try to get a lot of that revenue from raising payroll taxes on upper income and that sounds good but basically that affects small businesses and their ability to hire people. So I just think it shows a lack of understanding of the private sector. A lot of people make — who are reporting a quarter million dollars — you know, I’ve done that before in my small business, and I was actually taking home like 50 or 40.

In fact, about 0.7 percent of households file in the top two brackets: 

taxes.png 

Meanwhile, I don’t know why DeMint thinks people who are only taking home $40k or $50k would be filing as people who earn $250,000. I think he wants people to think that the government is taxing gross business receipts, so that if I spend $230,000 on my business to earn $300,000 in revenue, that I’m taxed on all $300,000. But that’s not how it works at all. You deduct business expenses and pay taxes on your net income. Any small businessman who’s earning a middle class income isn’t paying in the top two brackets, just as any salaried employee who’s earning a middle class income isn’t paying in the top two brackets.

Watch the Demint video here.

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Politico’s David Rogers Catches Republicans Lying About High-Speed Rail, Won’t Call Them Liars

Posted in Barack Obama, Economy, politics by allisonkilkenny on February 17, 2009

Matthew Yglesias

highspeedrail1_1David Rogers has a piece in Politico that offers a nice summary of the recovery plan’s actual high-speed rail provisions and the direct role of the White House in securing them:

The $787.2 billion economic recovery bill — to be signed by President Barack Obama on Tuesday — dedicates $8 billion to high-speed rail, most of which was added in the final closed-door bargaining at the instigation of White House chief of staff Rahm Emanuel. […] The same Maine and Pennsylvania Republican moderates who had criticized Obama’s school construction initiative were more accepting of the rail funds, since the Northeast corridor has a major stake in more improvements. To help pay for the added cost, a business tax break — providing a five-year carry back for net operating losses — was narrowed to keep the focus more on smaller firms with receipts of less than $15 million.

Needless to say, this reality is at odds with the made-up story conservatives have been telling all weekend about $8 billion being earmarked for a train to Las Vegas. And Rogers, as we’ll see, knows what the truth is, knows what conservatives have been saying, and knows that the two are different things, but he can’t quite seem to describe what’s happening with regular English words:

At the same time, conservative Republicans seemed almost blind to Obama’s role. Instead, in their campaign to find pork barrel projects in the stimulus bill, they painted the whole funding as a scheme by Senate Majority Leader Harry Reid on behalf of Las Vegas interests seeking a rail link to Los Angeles. “Sin City to Tomorrow Land” was one description.

Here is Rep. Candice S. Miller (R-Mich.) explaining her vote against the bill Friday despite the benefits to her home state: “Michigan is a state of about 10 million people, and we are the hardest hit, as I said, by this economy. And yet we are expected to get approximately $7 billion from this bill. And apparently the Senate majority leader has earmarked $8 billion for a rail system from Las Vegas to Los Angeles? You have got to be kidding. You have got to be kidding.”

Rep Miller wasn’t “explaining” anything, she was lying to her constituents. Nor were conservatives running a “campaign to find pork barrel projects int he stimulus bill” they were inventing fictional projects. Nor were obscure House backbenchers like Miller running a rogue operation here. House Minority Leader John Boehner led the charge on peddling this lie, and Senator Jim Demint was on the case as well.