TPM Reader DB fights the good fight to get his local paper to understand how the tax code works …
I’m in a feud with the local paper over the exact nature of the tax cut the house just passed. The tax cut is extended *for all Americans* on their first 250,000 correct? It’s not as is typically reported that the tax cut is only for familes making less than 250,000. I mean, a family making 275,000 will still enjoy the tax cut on the first 250, right? My local daily is wanting to dispute that notion on the ground that “that’s not how the AP reports it.” I think this is a huge distinction, improperly handled by most media reports, but maybe it’s me that’s got this one wrong?
I was actually mulling a post yesterday about how much tax politics is driven by people not understanding how marginal tax rates work.
Just so we’re all clear, under this plan everyone in the country would pay lower rates on the first $250,000 of income. Bill Gates would get the same tax cut on his first $250,000 of income as everyone else.
