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Tax Foundation Distances Itself From Drudge-Linked New York Post Anti-Health Care Reform Article

Earlier today, I highlighted an error-plagued New York Post article, complete with an error-plagued infographic, which claimed that House Democrats' health care bill would result in an astronomical tax increase for wealthy Americans. The author--seemingly unaware that Democrats were proposing an increase in marginal tax rates--reported that high-income earners would be on the hook for thousands, or tens-of thousands of dollars per year if Democrats get their way, when the the reality is much less extreme.

One of the author's sources for the piece was the anti-tax group The Tax Foundation--but now The Tax Foundation is disavowing the article. In an email, Tax Foundation economist Gerald Prante notes, "the Tax Foundation did not produce the results for the NY Post graphic. The only thing in that graphic that was from Tax Foundation was the 58.68 top rate for New York. We refused to do the calculations."

The NY Post interpreted that 58.68% as being an average rate, and we were explicit in our paper: http://www.taxfoundation.org/publications/show/24863.html that it was an effective marginal tax rate.

A call to the Post this morning went unanswered, but clearly responsibility for the misinformation in the piece--which was spotlighted on The Drudge Report--falls to the paper itself.


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Corrections don't matter to the NY Post or Drudge or their fans, the misinformation is out there in the minds of the wingnuts and now you can't dislodge it with 5 sticks of dynamite, a sworn statement by the Heritage Foundation and a mea culpa by Stephen Moore of the Club for Growth.

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Confusion between tax rates and marginal tax rates has been a weapon in the arsenal of the bamboozlement and FUD communities for a long time.

All ordinary English-speaking listeners will understand that paying tax at a 50% rate on $1 million means $500k.  I figger whoever is speaking has gotta know that an ordinary audience will take the words sprinkled upon them with their ordinary meanings.

OTOH, tax professionals use a jargon where "marginal" is taken as understood when discussing tax rates.  As with other professions, their jargon helps them do their job.

Drudge and The Post have been selling this kind of manure to an appreciative, delusional base for a long time.

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