You're watching...
Does president's tax 'fairness' example hold up?
Details
-
Description
Inside the battle to reform taxes
- Duration 2:37
- Date Apr 19, 2012
You're watching...
Inside the battle to reform taxes
Also in this playlist...
Auto-advance: ON
Auto-advanceThis transcript is automatically generated
Just how the tax battle is being fought by the president and his people chief national correspondent Jim Angle looks -- what the administration is saying.
And whether it holds up.
President Obama has made tax fairness -- signature issue and -- help make the case his -- recently gave this web presentation so let's start with an executive assistant U 35 year old single mother.
She works hard she does her job.
And she takes some 49480.
Dollars at the end of the day she takes an effect effective federal tax rate at 16% at any point to a married -- making a 105000.
Dollars a year on which he says they pay at 19%.
Rate.
Then a pediatrician and -- making 173900.
A year.
Paying a 23%.
Rate -- leading to this conclusion up 161923.
It's the basic core of our progressive tax system then the White House points -- a group -- multi millionaires it claims only pay an 18% rate tarnishing the progressivity.
Others however argue the -- system is so progressive that forty to 50% of all working Americans pay no income tax at all -- one reason critics immediately suspected something was wrong with the White House numbers.
Executive system we didn't come up with 60% we got 7% from.
And -- we looked at the teacher and the -- we couldn't get nineteen we got 10%.
And finally when we got our doctor did not 2316%.
And if you'll notice that looks like tax and a 7101618.
More -- coming have higher tax rate.
How could the two sets of numbers be so different.
The White House confirmed to fox that it included more than the income taxes the -- did not say so officials edited social security and Medicare taxes as well.
Which some Democrats argue is only fair.
Well when my Republican colleagues talk about taxes.
And they focus on income taxes.
They leave out the payroll taxes.
That virtually every American.
-- I think it's extremely deceptive on their part.
-- start mixing the income taxes and payroll taxes.
In a debate over personal income taxes critics argue they should not be included because taxpayers get that money back.
You pay the taxes and and you get a retirement benefit coming out there we'll get out hundreds of thousand dollars more in benefits -- Social Security Medicare than they ever pay -- taxes.
The idea that somehow we don't have in progress is scheduled today is just not true.
Consider this one of the early rounds and what is likely to be a knock down drag out election year fight over tax fairness in Washington Jim Angle Fox News.