From Media Matters' Jamison Foser:
ABC News reports on "upper-income taxpayers" who are trying to reduce their income so they avoid proposed tax increases on those earning more than $250,000.
According to ABC, one attorney "plans to cut back on her business to get her annual income under the quarter million mark should the Obama tax plan be passed by Congress and become law." According to the attorney: "We are going to try to figure out how to make our income $249,999.00." ABC also quotes a dentist who is trying to figure out how to reduce her income.
Apparently, ABC apparently did nothing in the report to correct the thinking [sic] given expression here. How do you make $250K and not know how a f$#&ing marginal tax rate works?
The irony is that most of the anti-tax animus is probably coming from people who (1) suffer from this same rudimentary misunderstanding, (2) are really, really angry that they could be taxed in such an outrageous way, and yet (2) have absolutely no chance of making $250K in any one year in their lifetime.
Then of course there's Joe the Plumber, who once probably fell into this same category, but who now will (improbably) make $250K (at least in 2008) thanks to the fact that FOX News and John McCain exploited his ignorance about marginal tax structure (among other things).
At all events, have I got an opportunity for that attorney...
(Via Paul Krugman.)
UPDATE: Daniel Davies observes (regarding another case): "what a great country America is, where someone can earn a quarter of a million dollars without understanding the concept of a marginal tax rate."