The 95% Delusion

"Music to drown by. Now I know I'm in first class."
--Tommy Ryan (Titanic)

The Left continues to churn out propaganda aimed at countering the Tea Party movement. One of the latest themes suggests that 95% of US taxpayers received a tax cut in 2009, and that surveys indicate that the majority of Tea Partiers surveyed were not aware of this 'fact'--once again implying Tea Party individuals as ignorant or stupid.

First, let's remind ourselves what propaganda is:

Any systematic, widespread dissemination or promotion of particular ideas, doctrines, practices, etc. to further one's own cause or to damage an opposing one.

OR

Ideas, doctrines, or allegations spread in a deceptive or disparaging manner.

This, of course, characterizes nearly the entire universe of political media. The rule of thumb, therefore, is that if it's political in nature, then it's likely to be biased and one sided. Achieving more balance requires that we put our critical thinking caps on.

In early 2009 the Obama Administration indeed enacted tax cuts as part of various stimulus initiatives to counter the economic slowdown. For earners between $200,000 (singles) and $250,000 (fams) (which currently does reflect nearly 95% of workers), then paycheck withholding was reduced to reflect annual reductions of $400 (single) to $800 (fam).

But the relevant question along these lines should not be 'Did you receive a tax cut?' but 'Did you pay lower taxes in 2009?' The real answer to the latter question won't be known until all returns are in. But my guess is that far fewer than 95% paid less taxes in 2009 than in 2008. For example, if you were single and made $50,000 in 2008 and received a 3% raise in 2009, then the incremental tax you paid on your additional wages in 2009 just about offset your 'tax cut.'

Despite the slow economy and bleak job picture I believe I have seen data showing that the majority of workers actually saw wage increases from 2008 to 2009, albiet lower than in the past.

The tax cut question as framed by the Left also ignores other taxes. Estate, state, local, property. Factor the whole package in and I believe, tilts things the other way. I for one paid far higher taxes in 2009 despite a wage freeze at my place of work.

If I could place an over/under bet on the fraction of workers paying lower total tax in 2009 vs 2008 = 95% of workers, I would be all in on 'under'...

It also must be noted that tax cuts of a few hundred dollars per capita are meaningless when government is spending, borrowing, and inflating by the $trillions. $1 trillion in debt burdens each US worker with upwards of $10,000 in principal alone. Government's spending, borrowing, and inflating activities amount to transfers of resources from citizens to government. Some of those transfers occur right away; others later.

Think deck chairs and Titanic...

The Tea Party focus is not a myopic one on taxes. Instead, the concern is fiscal resonsibility, limited government, and liberty.

Should the Left truly believe the underlying message of its propaganda--that 95% of workers are better off now under the policies of this administration--then this group is delusional.