Memo to Fox News & the GOP: America Has the Second-Lowest Business Taxes In the World

By David Sirota

Created 10/21/2008 - 9:35am

Last week, I appeared on Fox News to discuss Barack Obama's tax proposals. You can watch the clip here [1] - and make sure to watch the end where Fox News tries to drown me out with music.

Not surprisingly, the "debate" centered around the false premise that Obama's tax cuts are actually welfare. I say that's false because - as I pointed out on the show - everyone pays some form of taxes, whether it's income, property, sales or payroll taxes. When you take all those taxes together, most working- and middle-class Americans pay a higher effective tax rate than the Warren Buffetts of the world (as Warren Buffett, by the way, readily acknowledges). So Obama's plan to pass refundable income tax credits is only a handout if you look exclusively at one slice of taxes - in this case, income taxes. But in the overall tax scheme, those tax credits are aimed at better equalizing the tax structure so as to diminish the gap between Warren Buffett's very low effective tax rate and Joe Sixpack's high effective tax rate. Only in the asylums of Fox News and Republican Party politics is reducing that effective tax rate gap billed as theft from the rich to finance "welfare."