The inability of major media to accurately discuss the “fiscal cliff” continues on a nearly daily basis.
CBS Evening Newson Sunday (12/2/12) saw this report by reporter Anna Werner:
CBS‘s Anna Werner
WERNER: If nothing is done and the gridlock continues, about $110 billion in spending cuts and a $500 billion tax increase will automatically start to take effect in 2013. And the Tax Policy Center estimates the average American household would ring in the New Year owing about $3,500 more on their taxes. Republican Senator Lindsey Graham says it’s a possibility–
SEN. LINDSEY GRAHAM: I think we’re going over the cliff. It’s pretty clear to me they have made a political calculation.
WERNER: –blaming Democrats for not doing enough to meet Republicans halfway.
The Republican complaint about not getting what they want is what you expect to hear. But the notion, coming from Werner, that come January 1 an average family will be stuck with a bill for $3,500 is misleading–a deception in some sense borrowed from the faulty “cliff” analogy in the first place.
Most people know that this is not the way taxes work–you don’t pay the new year’s tax bill on the first day of the year. Those total figures reflect the tax increases that would roll out gradually over the course of the 2013 calendar year–if the White House and Congress never come up with a workable plan to avoid hefty tax increases and spending cuts that could cause another recession.
As a New York Times reported a couple months ago (10/10/12), “Policy and economic analysts projecting its complicated and wide-ranging potential impact said the term ‘fiscal hill’ or ‘fiscal slope’ might be more apt: The effect would be powerful but gradual, and in some cases reversible.”
The piece added:
The Treasury Department has significant discretion over whether to adjust the withholding tax tables, meaning it could choose to keep last year’s rates and avert much of the blow from the tax increases. Policy makers could also apply lower tax rates retroactively: If the Bush-era tax cuts expired for all households in January, they could be reapplied in February.
That’s reality– and it bears little resemblance to a “cliff.”
It would be a grave error to rely on these Cliff Notes
Ok, even after this post, however the $3500 is rolled out, who is this average american that will be paying so much more?
Why was this not discussed, can somebody answer?
Dont have of americans not even pay federal income tax?
I was one of the bottom 50% that did, being single. I averaged paying over $1000 a year after getting money back in years that the gov gave me $300-600 back. This is not including SS and Medicare payments.
I sure wouldnt be paying $3500 more (I earned pre-tax 16-18k/y)
Half of americans earn under $30k right? So who is this average?
If you raise taxes say, 5%, you would have to make over $70k/y at the least to end up paying $3500 more right? I dont know what percent bracket that is in, but I do know that it isnt average and is upper middle class, and while I can imagine it being a big jump for those between 70-100k, it is still a lie to trick the average person into thinking they would pay that much more.
People people people.Wake the f##k up.There is a war going on to hide the governments malfeasance /fraud/and misuse of the public funds, and trust.What you are seeing is this grand conspiracy fraying at every edge.Election over this government and its compliant press can no longer hide the pain.Did any sub moron ever really believe that by taxing the rich a bit more that all would be well?Feel good moment.Pat yourself on the back, and put your dunce cap back on.Children.A country of children.My fellow Americans we are all going to pay the interest on the interest on the interest of this bill.To keep this government and this country standing for a short time longer.That means higher taxes for everyone.Even the poorest amongst us.It may or may not be called a tax.But a rose by any other name….
From our Official Dunce, the news of the day . . . .
OMG..Who let the Dunce out?
What is pretty clear is that the majority of Americans understand this–that’s why they didn’t elect Romney. Now I’d the republicans could just get a clue,
Of course I meant IF the Repugs etc
It is human nature not to spread information that would hurt one’s own interests. So being well-paid millionaires and journalists simultaneously is a conflict of interest we must perpetually denounce every chance we get. We must always frame everything in that proven Occupy strategy of the 99% vs. the 1% of which the copress “journalists” are card-carrying members.
Tim if I am wrong in ANOTHER 4 years things will be better.Want to bet your house on it?(Oh wait you did :)If Im right things will be far worse.Tim things are gonna be far worse.Maybe you are one of those people who wants it all to end in one big oh so fair bon fire.The reason you try my nerves is because you never have one salient thought on how to make anything better.Just nasty rhetoric ,and ugly personnel invective.I guess that make you a community activist ,or a socialist-take your pick.This government is spending,printing,borrowing as fast as they can.Soon to raise axes on the rich causing a tailspin of higher prices that pass the tax on …to us.If money grew on trees my friend your world would be sane.