Fibs and Flubs at Democratic Debate
Straining the Facts at Iowa's debate on Sunday Jan. 4
January 5, 2004
Modified: January 6, 2004
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Summary
Dean kept understating the size of the tax cut he wants to repeal and glossed over his political motivation for sealing records from his terms as governor. Kucinich misled with a claim that a steelworker pays as high a tax rate as someone making $400,000 a year. And Gephardt said he'd gladly support a ban on donations from lobbyists, without mentioning the millions he has received from interest groups.
Analysis
Tax Fibs
Dean once again understated the value of the Bush tax cuts that he has promised to repeal:
Dean: Well, we've got to look at the big picture. If you make over $1 million, you've got a $112,000 tax cut. Sixty percent of us got a $304 tax cut .
Actually, as we've said before, half of all US households got more than $470 according to the Tax Policy Center. Dean arrives at his figure by averaging in the cuts received by the bottom 60% of households, which includes all those who paid no taxes in the first place and thus got no cut. But as we've pointed out before, that's just as misleading as averaging in the cuts received by the top 60%, which produces a figure of $1,948. By Dean's logic, President Bush could claim that 60 percent of us got nearly $2,000 and he'd be just as correct as Dean. Which is to say, not very. (All these figures -- Dean's and ours -- are calculated from a table posted by the nonpartisan Tax Policy Center.)
Dean wasn't alone: Kucinich gave a distorted picture of who bears the tax burden:
Kucinich: Well, you know, when you consider that a steelworker who's making $40,000 a year has virtually the same tax burden as someone who's making $400,000 a year, you see that there are inequities.
But that's generally untrue even after the two Bush tax cuts, as can be seen in this table:
Average Effective Tax Rates 2003
(Combined Federal Income, Social Security and Medicare Taxes)
Income (thousands)
Rate
Less than 10
3.0
10-20
7.0
20-30
13.7
30-40
17.6
40-50
18.8
50-75
20.1
75-100
21.4
100-200
23.7
200-500
26.7
500-1,000
28.7
More than 1,000
27.4
Source: Tax Policy Center Table 2
Even counting Social Security and Medicare taxes along with federal income taxes, households with between $40,000 and $50,000 in income pay an average, combined tax rate just under 19%, much less than the nearly 27% rate paid by those whose income falls between $200,000 and $500,000 a year, according to figures published by the nonpartisan Tax Policy Center.
It is true that a rich person who gets most or all their income from stock dividends and capital gains, and little or nothing from salary or other sources, would pay a lower tax rate than the sort of working person Kucinich mentioned. That's because the tax bill signed last year cuts the rate on dividend and capital gains income to 15%. However, such examples of the idle rich are not the rule and it's incorrect to imply otherwise.
Dean's Papers
Dean said he was protecting the privacy of homosexuals and others by refusing to release immediately all his papers as governor of Vermont .
Dean: I think if somebody is gay and they write me that, and they don't care to have that information disclosed to the public, that's their right.
What Dean failed to mention was that the sealing of his records was also motivated by a desire to protect himself. "We didn't want anything embarrassing appearing in the papers at a critical time in any future endeavor," he told statehouse reporters last year at the time of the sealing, according to The New York Times and The Boston Globe. And although aides later said Dean was joking, Dean's lawyer David M. Rocchio was quoted by the Times as saying that an
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