I was watching some of the coverage of the ongoing fiscal cliff mess and I heard one of the people being interviewed talking about how the “Bush tax cuts” are going to be extended for 98% of Americans. This. Is. So. Wrong. I’d like to assume that the people on TV informing the nation know that they’re wrong or that they’re misleading, but I don’t know — maybe they don’t know. Regardless, they’re unintentionally perpetuating myths that have long since been debunked.
#Infuriating: PUNDITS who are misleading the viewers by explaining that the Bush tax cuts are extended for ONLY 98% of the people. [1/2]
— Jeremiah Stanghini (@JStanghini) January 1, 2013
The USA has MARGINAL tax rates. Meaning: the first x-number of $$ you make is taxed at one rate and thereafter, a different rate. [2/2]
— Jeremiah Stanghini (@JStanghini) January 1, 2013
To flesh this out: it’s not that once you make a certain amount of income, your rate is completely different for all the money you make, NO! The USA has marginal tax rates, so the first $250,000 you make will get taxed at one rate and any money you make above that gets taxed at a different rate. So, when pundits or talking heads or anyone talking about this fiscal cliff mess tells you that the Bush tax cuts are being extended for 98% of Americans (or any number less than 100%) — they’re wrong.
Jeremiah Stanghini 
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