WASHINGTON, January 15, 2018: Now that it’s 2018, millions of taxpayers across America are still wondering: Will I get a tax cut or a tax hike?
The answer for a substantial majority of U.S. taxpayers is, “Yes, I’ll get a tax cut.” But according to the descriptive language in a recent CNBC assessment of the GOP tax reform legislation, you might reasonably believe that the vaunted tax cuts in the new law are a sham.
“Although it’s being billed as a tax cut, many people may end up paying more, CNBC’s John Schoen reports.”
Predictibly, however, Schoen bases his opinion on information provided by the “non-partisan” far left Institute on Taxation and Economic Policy. He concludes, without offering hard evidence,
“The poorest Americans will be hit the hardest, but the middle class will feel the burn as well. Because the income required to be considered “middle class” varies from state to state — and from individual to individual, depending on your definition of the term — we’ve highlighted the share of returns among the second, third and fourth 20 percent of earners that will get a tax cut and tax hike in each state.”
Emmie Martin, author of this CNBC piece, demonstrates her mastery of left-wing doublespeak in this paragraph. She creates the impression that poor middle class Americans – “depending on your definition” – are actually going to get whacked by the GOP tax reform bill.
What’s funny is that following Martin’s negative implications, the article actually includes in some detail, the projected state-by-state tax hike / tax cut stats for all 50 states in alphabetical order, and guess what? With a couple of oddball exceptions, it’s only in those already high-tax, true-blue “progressive” states – derived from that biased Institute on Taxation and Economic Policy study – where the supposed “burn” is clearly going to be felt by the middle class as so defined. Even in these states, however, very few taxpayers at all will feel that “burn.”
According to the CNBC report, the high tax states where the middle class will allegedly be taking tax hits include the usual suspects: California, Connecticut, Maryland and New Jersey. In these states, firm limits are now being imposed on mortgage interest deductions that have been long subsidized by taxpayers in the remaining 46 states, which is hardly unfair. Even in these states, however, it’s only a significant minority of middle class taxpayers that may see a tax hike in the coming year.
The worst hit, according to these projections, would occur in New York State, where 19 percent of middle class workers earning between $67,910 and $120,560 would see their taxes rise. New Jersey and California are nearly as bad in that bracket. But even so, on a percentage basis and with liberal statistical bias included, a non-significant minority of upper middle class taxpayers in all four states are going to see their taxes going up.
Across the boards, the most widely spread middle class tax hike in all four blue states just cited occurs in machine Democrat-run Maryland. Hikes there hit all three of CNBC’s middle income brackets for that state. 13 percent of earners with annual incomes of $28,070 to $50,520; 11 percent of earnings with annual incomes of $50,520 to $76,590; and 16 percent of earners with annual incomes between $76,590 and $131,540 will see their taxes increase this year.
But, while the pain is spread to some extent among all three projected brackets in Maryland, once again, the worst hit – 16 percent in the higher middle class bracket – isn’t anywhere close to a majority of this state’s middle class taxpayers.
Three of the state statistics cited in this article appear to some extent to be anomalies. The highest percentage of projected tax hikes in Louisiana will hit some 14 percent of that state’s upper middle-class taxpayers.
Ditto for the same brackets in slightly purplish North Carolina and increasingly blue Virginia, where 11 percent of upper middle class taxpayers will purportedly see a tax hike. Somewhat bizarrely, the middle-middle class taxpayers of Arizona – those earning between $39,379 and $62,880 – will see a tax hike this year. However, only 3 percent of the state’s lower and upper middle class brackets will take a modest hit.
As for the rest of the states in CNBC’s report: With the exception of the specific states and specific middle class tax brackets just cited, in all three middle class brackets across the country, tax hikes will hit just 10 percent or considerably less of all middle class taxpayers. That’s a far cry from mass quantities of middle class taxpayers who will allegedly feel the “burn” of tax hikes this year.
As for the allegedly hard-hit poor, CNBC cites no statistics at all. If statistics existed, CNBC would only have been too happy to prove their allegation that “The poorest Americans will be hit the hardest.”
In short, this article is yet another in a continuing cascade of reports written to frighten any voters across the country that might consider voting Republican in 2018. The article doesn’t exactly lie, but it masterfully misleads, implying but not stating that all poor people and a great many middle class people will experience a substantial tax hike.
Yet those readers brave enough to scroll through the actual numbers below the main article will see that even the biased tax cut/tax hike states compiled on a worst-case basis by a left-leaning think tank clearly demonstrate that relatively few middle-class taxpayers, even in super-liberal blue states, will actually see a tax hike.
The real truth is that an overwhelming majority of middle class taxpayers across the country will actually be getting the significant tax cuts they’d originally been promised by Donald Trump and the GOP. Any implication that significant numbers of America’s middle class taxpayers are getting hit with horrendous tax hikes is just another chapter in the ongoing saga of fake news and fake reporting by an astonishingly biased and untrustworthy media.
*Cartoon by Branco. Reproduced with permission and by arrangement with Legal Insurrection.