Taxes

On Monday’s CBS "Early Show," co-host Harry Smith talked to John McCain supporter Carly Fiorina and Barack Obama supporter Senator Claire McCaskill about the respective economic plans of the presidential candidates: "Bear market blues. Wall Street returns from the holiday as gas prices set another new record. Can either candidate calm America's fears?" At one point, Smith asked Fiorina: "How do we do all of this stuff? And we're not making more money, the tax rolls are not growing, the coffers are not full. We're just talking about deficit -- if nobody's going to get taxed, isn't this just going to be deficit city?" (audio available here)

While Smith did not feel the "coffers" were "full," at least not full enough for him, in reality, government tax revenue has tripled since 1965 and since the Bush tax cuts took effect in 2003, corporate income tax revenue has reached its highest level in over 20 years.

Smith began the segment by touting a new CBS poll: "The economy remains a major issue for voters as we head into the fall elections. In fact, a recent CBS News poll shows 78% of Americans think the economy is in bad shape." Considering the "Early Show’s" declaration of a recession last week it’s easy to understand such poll results.

Rush Limbaugh's new deal with Clear Channel, as flashed by Drudge (also covered or addressed here and here at NewsBusters; here at the New York Times; and here in a very long New York Times magazine article), is north of $400 million for the next eight years.

Good tax planning too: Maharushie will get his reported nine-figure signing bonus this year before a possible President Obama does his hundreds of billions in damage. Limbaugh's tax savings, if the bonus is $100 million and Obama gets everything he wants, would be a hair under $17 mil (12.4% Social Security on all but $148,000, plus the 4.6% planned increase in the top rate).

One conclusion you can reach, based on what newspaper industry watcher Newsosaur told us earlier this week, is that Old Media covering the Limbaugh story is like zombies covering the living (link in excerpt was in original):

Here we go again. Just as with 2001-2003 coverage of Bush's tax cuts which gave the greatest percent cut to those in the lowest income tax bracket (going from 15 down to 10 percent, a 33 percent reduction), ABC's George Stephanopoulos on Sunday chose to undermine the fairness of John McCain's proposed tax plan (and illustrate the media hostility sure to greet McCain whenever he takes a conservative position) by citing estimated dollar cuts by income level, as if it's unfair for someone earning more to get a larger dollar amount tax cut than someone making less.

Citing the Tax Policy Center, a project of two left of center organizations -- the Urban Institute and Brookings Institution -- Stephanopoulos reminded This Week guest Tim Pawlenty, the Republican Governor of Minnesota, how “your trademark has been that the Republican Party has to be the party of Sam's Club, not just the country club.” Stephanopoulos, who failed to hit his other guest, Democratic Congressman Rahm Emmanuel with any numbers critical of Obama's tax plan, pounced on Pawlenty:

The Tax Policy Institute [actually, Center] has crunched the numbers on John McCain's tax plan. I want to put some of them up there right now. It shows that if you're making under $60,000 a year about, the bottom 60 percent will get about $150. The top one percent of people, making about $600,000 a year, get $45,000. The top 0.1 percent -- that's approaching $3 million a year -- get almost $270,000. How do you sell that as a plan that targets Sam's Club more than the country club?

Regretting that “few grownups are concerned about the $526 billion cost so far for the Iraq war without end” because “President Bush and his rich buddies have made sure most of the monetary burden will be borne by our children and grandchildren,” USA Today founder Al Neuharth, in his weekly column on Friday, recommended “a stiff income tax surcharge” to pay for the war. But Neuharth made clear his real motive is to turn those for the war against it:

The surest way to jar us into realizing the unconscionable cost of the Iraq debacle is to impose a stiff income tax surcharge to pay for it. If we did that, most hawks would become doves overnight.

Neuharth hailed Abraham Lincoln for imposing an income tax to pay for the Civil War and stressed how the current rates in the U.S. “are below those of other major countries. France, Germany, Great Britain and Japan all assess higher rates. The Netherlands' top rate is 52% and Sweden's is 60%.”

In the past when Warren Buffett has spoken out the "super rich" needing to pay a higher tax rate, the media have hung on his every word. But, now that he has spoken out against a windfall profits tax on oil, will they notice?

Buffett said he disapproved of the windfall profits taxes in an interview with CNBC's Becky Quick on "Power Lunch" on June 25.

"I think it is very hard to have windfall taxes," Buffett said. "Steel has doubled in price. Is that a windfall for the steel producers? Sure. Corn is $7 a bushel; soybeans are at $15 a bushel. I don't think any candidate in his right mind with the number of electoral votes in farm states would say you ought to tax farms specially because they are getting a windfall."

If, as shown yesterday (at NewsBusters; at BizzyBlog), media reporters can't even get basic things like the fact that $1.74 x 3.5 doesn't equal anything close to $4 right, you would think that it's way too much to expect them to understand the difference between income and net worth.

You would be correct.

The coverage of last week's Social Security tax-increase proposal by Democrat Barack Obama included this representation by the candidate:

To extend the life of Social Security, Obama proposed applying a payroll tax to annual incomes above $250,000, affecting the wealthiest 3 percent of Americans. The Democrat also proposed eliminating income tax for any retiree making less than $50,000.

As anyone aware of the concept of supply and demand could have foreseen, Americans are driving less now that gasoline prices have passed $4.00 per gallon. So on this morning’s Today show, NBC’s Tom Costello dutifully noted that Americans have driven 20 billion fewer miles so far this year, but then declared a “bad news” side effect of drivers buying less gasoline:

“We use federal tax money that comes from gasoline sales to maintain the nation’s roads and bridges. We’re looking at a billion-plus-dollar short fall right now, and the National Governors Association wants Congress to come in and fill the gap.”

I guess “filling the gap” could either mean hiking the tax on gasoline, or supplementing the highway fund with other tax dollars. Maybe the real “bad news” for consumers is that some politicians seem determined to collect all of the gasoline taxes they desire, whether drivers actually buy the gas or not.

A liberal-leaning organization has produced a report on the 2008 presidential candidates’ tax plans and, accordingly, the Associated Press has jumped on it.

In her June 17 article, AP’s Liz Sidoti used a recent study by the Tax Policy Center -- a project of the liberal-leaning Brookings Institution and Urban Institute -- to advance the notion that Obama’s tax policies favor the middle class while McCain’s policies favor the wealthy:

Overall, the Tax Policy Center said people with very high incomes would benefit the most under McCain's proposal, while low- and middle-income taxpayers would see larger tax breaks under Obama's plan and wealthy taxpayers would see their taxes increase.

Press coverage of Barack Obama's Social Security proposal in Columbus, Ohio last week made many of the usual mistakes any time there's a story about the government's "third rail" program. But in this case it missed what would be a historic de-linkage of payments made into the system from benefits paid out.

First, here are the key paragraphs from the Cincinnati Enquirer's coverage of Obama's speech (bolds are mine):

Sen. Barack Obama promised senior citizens Friday that as president, he would protect Social Security benefits and provide universal health care.

To extend the life of Social Security, Obama proposed applying a payroll tax to annual incomes above $250,000, affecting the wealthiest 3 percent of Americans. The Democrat also proposed eliminating income tax for any retiree making less than $50,000.

..... Obama said it is unfair for middle-class earners to pay the Social Security tax "on every dime they make," while millionaires and billionaires pay it on only "a very small percentage of their income."

The sudden and shocking death of NBC's Tim Russert brought an outpouring of kindness and generosity. The deluge of coverage suggested Russert had become a very central figure in the media-political complex. He was much better known than about 500 members of Congress, and had more political clout than about that many as well. Not enough people have wondered how the un-elected media have gained so much power and influence in the nation's capital. For our part, we hailed Russert's tough but fair questioning first in 1993, when he was asking tough questions about Bill Clinton's first big tax hike. From the August 1993 edition of MediaWatch:

NBC Meet the Press host Tim Russert has added historical perspective to the budget debate by comparing the Clinton plan to the 1990 deal. On June 27, he grilled Budget Director Leon Panetta: "You raised taxes, the economy went further into recession, and there was no deficit reduction. Why is it going to be different in `92 when it didn't work in `90?" Treasury Secretary Lloyd Bentsen received the same welcome on July 25. "1990. Congress got together with the President, raised taxes, cut defense, tried to limit Medicare growth, promised a $500 billion dollar deficit reduction....The deficit went up. Why isn't the same going to happen this year?"

In his report on Uncle Sam's Monthly Treasury Statement released Wednesday afternoon, the Associated Press's Martin Crutsinger incorrectly informed readers that the stimulus checks sent out by the government represented the major reason why May's monthly deficit ballooned from a year ago. The AP reporter also continued with the wire service's seemingly never-ending recession obsession.

Here's the headline, and how Crutsinger began his report:

Stimulus payments result in record May deficit

A flood of economic aid payments pushed the federal budget deficit to $165.9 billion, the highest imbalance ever for May.

The Treasury Department reported Wednesday that the May deficit was more than double what it was in May 2007. Some $48 billion in payments went out as part of the $168 billion economic relief effort to revive the economy and keep the country from a deep recession.

CNN continued to harp about "big oil’s" record profits and the Democrats’ proposed windfall taxes on companies like ExxonMobil on Wednesday. In an interview of Kansas Senator Sam Brownback on "American Morning," co-host John Roberts was amazed over the Republican’s opposition to the tax proposal. "There were a couple of other provisions in this bill. One of them were to roll back the $17 billion in annual tax breaks so that these five biggest oil companies get. Together, they made... $36 billion in profits in the first quarter this year. Why do they need $17 billion in tax breaks?" Later, during "The Situation Room," host Wolf Blitzer returned to his laser-beam focus on ExxonMobil as a particularly "guilty" part of "big oil." He asked former Republican presidential candidate Mitt Romney, "Explain why it's appropriate at this time of rising gas prices, for ExxonMobil, for example, to get additional tax cuts."

In Wednesday's off-lead story by Michael Cooper and Larry Rohter, the New York Times found both McCain and Obama retreating to home base when it comes to economic solutions. But the Times' unconscious embrace of liberal conventional wisdom was evident in how it treated much-argued political terms like "windfall profits", "the death tax," and even "victory" in Iraq.

Bush's mild tax cuts were seen as only benefiting "the wealthy" (by whose definition?), an assertion the Times underlined by repeating it three times.

And look how the Times used quotation marks as warning flares or to suggest a conservative position was dubious. While "victory" and "death tax" were seen as partisan Republican terms and secured in protective quotes, Democrat-loaded terms like "windfall profits of oil companies" weren't put in quotes but stood unencumbered and presented as fact, even though the phrase "windfall" is calculated to make it appear oil company profits are somehow unjust or unearned.

Update | 10 AM: McCain Campaign Comments to NB on Mitchell Remarks

McCain campaign deputy chairman Frank Donatelli has commented to NB on Mitchell's remarks. See report at foot.

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IMing with a friend in England this morning, Morning Joe on in the background, I was vaguely aware that an Obama staffer was on, touting her candidate's economic plan. Signing off my chat, I focused on the tube, only to realize that the Obama staffer was in fact . . . Andrea Mitchell.

Mitchell cast the battle of the candidates' tax plans as McCain's "old-fashioned" supply-side economics versus Obama's "mainstream, centrist" plans that "do help people" while responsibly "paying for everything."

View video here.

CNN’s Wolf Blitzer pressed McCain campaign adviser Carly Fiorina about oil companies "awash in record profits" on Tuesday’s "The Situation Room." The CNN host used ExxonMobil as an example five different times in his questioning. "...ExxonMobil has got these billions and billions of dollars in record profits. They can afford to not necessarily get additional tax cuts."

After Fiorina outlined McCain’s proposal to lower the federal business tax rate at the beginning of the segment, which began 14 minutes into the 5 pm Eastern hour of the CNN program, Blitzer took a persistent stance in asking if the reduction in taxes included "big oil." First, the CNN host asked, "Would that reduction of the tax rate also include, as Obama says, ExxonMobil and the other big oil companies, who are awash in record profits?"

Blame do-nothing Republicans for high gas prices. That was the impression visitors to ABCNews.com got this afternoon.

Among the "top headlines" lineup Web site editors included a story on "Fueling Anger" with the teaser headline: "Rejected! Big Oil Tax Gets Shelved." [see related post about CBSNews.com's bias here]

The accompanying caption to the ABC photo illustration read, "With prices soaring, GOP halts Democrats' wide-ranging energy plan."

The article itself, by writer Z. Byron Wolf, was front-loaded with bias, slamming Republicans for their filibuster of a new windfall profits tax measure while dismissing the GOP's energy plan as ineffective in the short term (emphases mine):

The supposedly surprising rejection of the Lieberman-Warner climate bill last week had an element that Old Media in the US hasn't covered, but is very relevant.

While the press is ever eager to jump on politicians who fly in the face of supposed "world opinion" when it goes against US positions and traditions, it has been virtually silent over how "the rest of the world" has been rejecting the true linchpin of government climate policies: supposedly climate change-related higher taxes and fees. Surely some of the green-leaning Senators who were supposedly on board but voted against cloture were not blind to this.

Consider the following:

"Republicans Block Taxes on Big Oil Profits" blares the teaser headline on the front page of CBSNews.com. Under a graphic of the Capitol dome and a fuel gauge nearing empty, the caption reads "Senate GOP Stops Dems' Effort To Rein In Profits Of Largest Oil Companies As Gas Prices Soar."

That's a lot of bias packed into 24 words, and that's before the reader gets to the actual article. Notice the lack of cynicism as to the motive of the Democrats, who are painted on the side of consumers against industry, although the primary beneficiary of a windfall tax would be, well, the Democratic Congress.

There are limits to what you can properly communicate in a headline, but a more neutral treatment might have been: "Republicans Block Advance of Oil Profit Tax: Democrats say tax will encourage alternative fuel research, Republicans argue it will worsen energy problems."

In the AP/CBS article itself, oil industry claims that a windfall tax is counterproductive were summarily dismissed with a populist soundbite by a Democratic politician:

Freshly posted to Robert Cox's Olbermann Watch blog: news of a FIFTH tax warrant surfaces for MSNBC's bombastic uber-liberal Keith Olbermann.:

Olbermann Watch has confirmed that the New York State Department of Labor filed an Industrial Commission Warrant against Olbermann Broadcasting Empire on April 1, 2008 for $1,039.15 with the New York County Clerk's office.

An Industrial Commission warrant is a remedy available to the Labor Department after all administrative procedures have been exhausted - the employer had been given notice of the claim, had an opportunity to contest it, and the time for all appeals has lapsed. It creates a lien on all property of the corporation within the county and gives the county sheriff the right to execute the warrant by, among other things, attaching and selling the employer's property within the county. There are various procedures that the sheriff has to go through before selling the property.

The cover of this week’s Newsweek read "Obama, Race, and Us." But the cover story isn’t really a news report at all. It’s Newsweek’s Evan Thomas playing Obama adviser, writing a memo offering all his wisdom on behalf of the Democrat. When you really want the Democrats to win, you apparently start telling them how they should (and shouldn’t) do it. The headline was "Memo to Senator Obama: Given his successes, it's easy to argue that Barack Obama doesn't need advice. But how he'll handle race going forward is by no means a settled issue. Our open letter." Thomas also repeats the incessant Newsweek dirge that Obama's being smeared as a Muslim on the Internet.

Thomas oddly argued that Obama will be the beneficiary of gaffes (not the provider?), but must provide the people with solidly liberal policy alternatives that will be the more helpful to the lower-income voters than the Republicans:

You are asking the wary to trust you, so your promises, and policy, must ring true. Your opponents will make gaffes, and you'll be able to capitalize on them. Last week Clinton referred to Robert F. Kennedy's June 1968 assassination in defending her decision to keep her campaign going. (She later said she regretted if her comments were "in any way offensive.")

Today, I have two short United Press International stories that each have bias in them, but aren't worth a long, drawn out fisking of their own. So I'm combining them into one Newsbusters report. The first UPI report characterizes a Dutch anti-Islam cartoon as having been "found most offensive," as if it were universally accepted that it is, indeed, offensive and the second is a ridiculous report that is treated as "news" when it is really nothing but meaningless nonsense dressed up as news -- the second having the ulterior motive of stirring hatred against the eeevil "rich."

First up is "Cartoonist honored for Mohammed portrait" where UPI reports that the Danish artist who drew the "controversial cartoon of the Prophet Mohammed with a bomb in his turban" has been honored with the Sappho Award by the Danish Free Press Society. This is all good news but the UPI couldn't help but slip in some of their own bias against this brave artist in the last two paragraphs of the report. (my bold emphasis)

It seems that the drive-bys in the mainstream media have decided to keep on driving past a Rasmussen poll that contradicts the message of certain left leaning darlings on the presidential campaign trail. (h/t MKFreeberg)

The latest Rasmussen Reports national telephone survey found that 62% of voters would prefer fewer government services with lower taxes. Nearly a third (29%) disagrees and would rather have a bigger government with higher taxes. Ten percent (10%) are not sure.

Whoa, we're not supposed to think like that. No wonder the tax and spend cheerleaders in the MSM passed it by. Nearly all of the results reported in the Rasmussen report contradict liberal group think.

The media love Warren Buffett and CNN's "American Morning" was no exception on May 20. Buffett's interviewer, CNN's Becky Anderson, absolutely gushed over him.

"[S]o a fascinating guy, great to meet. And he makes it all seem so simple," Anderson said to "American Morning" fill-in host Kyra Phillips, who concurred and noted Buffett's political affiliation.

"Oh, he's so down to earth," Phillips said. "He just seems like a very genuine, real person you could have a great time with. And he's a Democrat, right? I'm curious. Did he talk to you about who he is backing?"

Just when you thought every possible gas price angle had been explored by the media, they found another fresh angle - gas prices are forcing cutbacks within the Louisville, Ky. municipal government, including swimming pools that little girls will be deprived of.

"When we arrived in Louisville [Ky.], we headed straight for the Breslin Park pool," CBS correspondent Nancy Cordes said on the May 15 "Evening News." "Half the city's public pools will be padlocked this summer leaving these little girls high and dry."

Cordes's "CBS Evening News" story was a part of its "Eye on the Road" series - an effort to show how people are affected by gas prices throughout the country. For the series two reporters have been driving across the country in opposite directions, one in a Toyota Prius and the other in a Ford Fusion.

How do you write an article about Uncle Sam's April financial results without telling readers how much money came in and went out -- especially if what came in was an all-time record?

Yesterday and today, many journalists have shown us how. Two of them are Martin Crutsinger of the Associated Press and Michael M. Phillips of the Wall Street Journal.

Crutsinger's AP report actually made it appear as if collections is the problem area. In fact, as you will eventually see after the jump, April's result had nothing to do with "dampening" revenue growth, and everything to do with exploding spending.

Crutsinger began as follows:

CNN’s Wolf Blitzer, during a much hyped interview of Barack Obama on Thursday’s "The Situation Room," tried to dismiss facts about the Illinois Senator’s as mere opinions. First, the CNN host made a prediction about the upcoming general election campaign: "You know they're going to paint you -- the McCain camp, Republicans -- as a classic tax and spend liberal Democrat, that you are going to raise the taxes for the American people, and to spend money like there's no tomorrow when it comes to federal government programs. You ready to handle that kind of assault?"

How do you get a better air safety record? Try not crashing first.

The New York Times reported that outside the United States the Federal Aviation Administration is considered a "role model" and "first-rate regulator," because it has the lowest accident rate in the world. The Times' viewed regulation rather than market based innovation as the solution to accident rates in foreign countries.

In Latin America, "accidents number one for every 600,000 flights" and "Africa is the least safe region in the world for air travel, with one accident for every 244,000 flights," said the Times.

One source, Giovanni Bisignani, secretary general of the International Air Transport Association, lamented the "the lack of a common regulatory framework" and failure to live up to standards set by the International Civil Aviation Organization, a United Nations specialized agency.

But the success of accident records in the United States doesn't lie solely in regulation. Safety looks good to consumers too.

The debate over a gas tax holiday has caught the attention of all three presidential candidates as well as the media. Last night, CBS "Evening News" said 150 economists had signed a petition against the cut and quoted one saying "it isn't sound economic policy."

But that list includes several prominent liberal economists, some who have also opposed the Bush tax cuts and pushed for a higher minimum wage in other petitions. The list featured economists from liberal groups such at the Brookings Institution and the Urban Institute, as well as several former Clinton staffers.

Reporter Priya David didn't mention any political affiliations or leanings for those opposed to the gas tax holiday. "But last week some 150 economists signed a petition saying it's a bad idea," she said.

On Friday's Countdown show, MSNBC analyst Jonathan Alter, also of Newsweek, suggested that voters who support Hillary Clinton's call for a temporary suspension of the federal gasoline tax are "stupid" as he contended that the Clinton campaign team are "assuming that people are too stupid to realize that this is a bad idea that won't save them any money at the pump." Alter later argued that the tax cut strategy may end up succeeding politically for Clinton because "there are a lot of what are called 'low information' voters" who are "not reading the unanimous, unanimous newspaper editorials against this. They're not talking to the environmentalists, the economists, everybody who unanimously believes this is a bad idea. They're, you know, understandably struggling, and at the pump, they're paying a lot for gas, and they want some relief." (Transcript follows)

Big bad oil company ExxonMobil is "on the defensive in the face of consumer ire and congressional indignation" as it raked in a "huge" first quarter profit, Washington Post's Steven Mufson informed readers of his front page May 2 article.

Mufson later noted that "[d]espite Exxon's colossal profit, the company's stock fell yesterday." Mufson blamed investors "shift[ing] gears" to turn to other stocks and pull out of commodities. Yet Mufson made no attempt to explore how "new congressional vows to come up with legislation" to tax oil company profits might play into investors being skittish about the company, a favored bogeyman of left-wing populist politicians in election years marked by high gasoline prices.

By contrast, the May 2 Financial Times took a less political, business-oriented look at ExxonMobil with a front-pager by Sheila McNulty and Carola Hoyos entitled, "Exxon oil production struggles for growth":