I won’t be able to call in so here is a notice to Rick that he is misstating something in regards to taxes on the wealthy.

He said to Chris Coons that removing tax loopholes and deductions would generate $749 billion versus raising the marginal tax rate. He has repeated it on air, and I think I heard it has become his new Rick Jensen plug…

He gave his source on the air last Friday to a caller, and it had to be looked up…

That source is a CNN Money article written by Jeanne Sahadi.

Under the heading of “Let the Bush Tax Cuts Expire For Incomes Under $250,000” the total stated earned is $1 trillion over ten years. That is more than the $749 billion that removal of tax credit would net.

The paragraph Jensen refers to is this one…….

If no one could claim more than $50,000 in itemized deductions, that could raise roughly $749 billion over a decade, the Tax Policy Center estimates. And nearly 90% of that revenue would come from households making more than $200,000.

The mistake Jensen made was to scroll up and see this statement………

The bill was estimated by the Joint Committee on Taxation to raise an estimated $47 billion over a decade if all the Bush tax cuts expire. .

So his statement that capping deductions at $50,000 yields $749 billion, and raising the rates to the Clinton years will only generate $47 billion is based on this misreading….

For “The Bill” raising only $47 billion, was not the removal of the entire Bush Tax Cuts. It was a separate bill, called the Warren Buffet Rule, that sets a minimum tax rate on millionaires. If this gets passed, all those making $1 million will have to pay 30% in taxes. No more will Romney be able to use “carrying interest” loopholes to keep his rate down to 13%. He and all others over $1 million will pay 30%; it will be the new minimum…

It is this bill that will net $47 billion….

So alas the promo is wrong; his radio show is wrong, and his comment to US Senator Chris Coons’s is wrong….

In his defense, the article is tricksy. I had to read it three times to figure out what the author was trying to say. From other sources I knew that such a statement couldn’t be correct. From Chris’s reaction, I really don’t think Chris Coons knew that though…

If he changes the promo to say the “Buffet rule of adding a surtax”, instead of saying raising the top marginal rates, then his promos and further utterances on his show will be correct….

Delaware is fortunate where if an opposing side messes up, we tease them about it .. This is good natured, and amounts to no more than a “psst, you may want to change that”, and comes with the realization that we all make mistakes… I wish I could have called in to let him know instead of having to post it here, but unfortunately I won’t be around during his show… 😦

Because the mistake is so prominent, to have one such mis-truth continue, becomes embarrassing each time it gets reprocessed…

We are very lucky to have a station of this caliber in our diamond of a state, so any correction forthcoming must be taken as being made because of state pride…. “Our” station is correct on everything else; this should be fixed quickly and quietly.