Today the media reports another tax cut favoring the rich. The Republicans propose an Obamacare tax repeal. According to a piece published by CNBC: “The proposed repeal of taxes that were put in place to fund Obamacare would give America’s top earners the biggest tax cut.” Wow, this “story” is just the latest example of Republicans favoring the rich, indeed the very rich, over the middle class and poor.
This little tidbit neatly fits into the old Republican tax narrative. But is this really a story at all? Let’s understand this, just a little bit. Obamacare included two primary taxes that affected individual taxpayers. It imposed a 3.8 percent tax on investment income, and the 0.9 percent increase in the Medicare payroll tax. These Obamacare taxes applied to individuals earning at least $200,000 per year, or couples earning more than $250,000. Now the Republicans propose eliminating these two taxes as part of their Obamacare “repeal.” Let’s stop right here for just a minute.
But These Obamacare Taxes Only Hit the Rich, Right?
You see, something just struck us, and struck us smack in the old kisser. We think the way these Obamacare tax increases worked was that they didn’t hit individuals making less than $200,000 or couples making less than $250,000. The middle class thankfully never paid a nickel of these taxes. Obama just snagged the wealthy and super-wealthy. And the wealthier you were, the more you paid. So, we suppose, there’s just no way for the middle class to get a tax benefit from these repeals, is there? They paid nothing extra before. So there’s nothing “extra” to get back. Did we miss something?
But we can’t let that stand in the way of a great narrative. The Republicans just always give tax cuts to the rich. Always. Yes, that’s right. And this is just another prime example of them cutting taxes on the wealthy and very wealthy. Let’s make this look real good: “The top 0.1 percent of earners, those making $3.9 million or more, would . . . see their taxes cut by 2.6 percent, or an average $207,390.” Now, how’s that sound!
The Whole Truth – Where is It?
So we need to write more headlines like this one. “Top 0.1% of earners would bet a $207,000 tax cut under GOP plan to repeal Obamacare.”
Some of us might call all of this a “half-truth.” Seems like it is a truthful statement that the tax cuts benefit the wealthy far more than the middle class. But that statement doesn’t represent the whole truth – the whole story of the imposition of the Obamacare taxes and then their potential subsequent repeal.
It’s back to our vast and continuing disappointment in the good ole media. We’ve written before about the responsibility of reporters and journalists – report the facts. Please don’t create a narrative. Let the historians narrate and moralize. So, Mr. CNBC journalist, next time please tell the “whole” story and keep your personal interpretation away from us. The whole truth about Obamacare tax repeal. If you want to express your opinion, or create an impression, then point out that’s exactly what you are doing. Otherwise, please turn in your Press badge.