Coverage of the debate over extending the so-called "Bush tax cuts" has been rife with inaccuracies and half truths.  Just the way it is presented shows bias — it is always presented as negotiations to extend expiring tax cuts rather than negotiations to prevent tax increases.  Since it is largely the top income rate that is being debated — the one that will go from 35% to 39.6% on January 1, 2011 if nothing is done, it is typically discussed as a "tax cut for the wealthiest Americans" or "for the richest taxpayers", not taking into account that this tax will also fall on businesses large and small.  In response to such coverage in the Chronicle, I sent the following letter:

re:  The tax cut debate

Coverage of the debate in Washington about forestalling the tax increases on all taxpayers slated to occur on January 1, 2011 — that is, extension of the so-called "Bush tax cuts" — has focused on the reduction in the top tax rate.  In both news stories and opinion pieces throughout the Chronicle (and, of course, other media sources), this particular tax item is typically portrayed as a tax cut for "the wealthiest Americans" or "the richest taxpayers", and in some cases, "millionaires and billionaires" (even though the top rate starts at $200,000 for individuals). 

To refer to the tax cuts in this way is misleading and ignores an important economic point:  should a tax increase occur, it won't just affect individuals and families, but also businesses big and small.  With an unemployment rate still hovering around 10% and politicians promising that their focus is on "jobs, jobs, jobs", it seems counterproductive to raise taxes on those businesses that would be providing those jobs.  Keep in mind, every dollar a business sends to the government is a dollar that company doesn't have to hire new workers or to invest in new equipment, research and development, or facilities expansion.

When reporting on the debate about taxes, the talking points of the politicians shouldn't be taken at face value.

Sincerely,
Dave Smith
Houston, TX