On Friday’s World News, and again on Saturday morning’s Good Morning America, ABC ran reports highlighting hedge fund manager John Paulson’s "jaw-dropping" 2010 income from capital gains, fretting that he will not pay as high a tax rate as many regular income earners, and referring to Paulson’s lower tax rate as a "loophole" or a "tax break." GMA co-anchor Dan Harris even relayed complaints of "extreme unfairness."
Both reports ignored the historical evidence - recounted below - that raising capital gains tax rates leads to revenue losses for the government, and instead concentrated on the complaints of those who want to see a tax increase. Both reports also misleadingly referred to "so many Americans" or "the typical American" paying income tax rates of "up to 35 percent," without noting that many lower-income Americans pay no income taxes while the 35 percent rate only applies to higher-income earners. And the idea of cutting the income tax rate on many Americans to move it closer to 15 percent certainly was not mentioned.
On Friday’s World News, anchor Diane Sawyer set up that show’s piece: