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1. NBC Frets Over Income Gap, Touts Advocate of Higher Taxes on Rich Without a peg to anything in the news, NBC decided Monday night to base a story on a four-year-old contention by a professor that the middle class is worse off now than in the 1970s, followed by a piece promoting Warren Buffett's claim the rich don't pay enough in taxes. "Not fair," Brian Williams teased with matching text on screen, "one of the world's richest men tells Tom Brokaw the taxes he pays aren't fair, meaning: Why is his tax rate so low?" Williams later praised Buffett's "brave campaign," but first he introduced a story on how "the gap between the super-rich and everybody else in this country seems to be growing. The middle class is caught in a kind of financial squeeze." Reporter Lee Cowan featured the claims of Harvard law professor Elizabeth Warren who wrote a 2003 book about middle class families going broke. Cowan ominously concluded: "A generation ago, the middle class was comfortable. These days, they're comfortable but scared, living on a wing and a prayer." Next, Brokaw touted Buffett: "It is well known that Warren Buffett is a contrary billionaire. Unlike most of his fellow billionaires, he believes that they should be paying a higher tax rate Buffett sees a fundamental injustice that he says touches all Americans." Buffett insisted: "The taxation system has tilted toward the rich and away from the middle class in the last ten years." 2. Matthews Offers Speech for Obama Use to Hit Hillary from Left Chris Matthews got his start in politics by writing speeches for Jimmy Carter and on Monday night the Hardball host returned to his roots when he espoused an anti-war screed he urged Barack Obama to use as a way to attack Hillary Clinton from the left: "Here's what I think Obama should say, starting tomorrow night, at the big MSNBC debate in my hometown of Philly. Quote: 'This country is in a rut. A rut that leads to endless war in Iraq, that leads to inevitable war with Iran. The American people and not just the Democrats want to get our country out of this rut. The great majority of them want this election to take us to a new place, not just led by someone smarter along the same rut. I promise to take us to that new place. Senator Clinton is smart, she's hard-working, she's serious but every vote she has cast, every word she has spoken says yes to the status quo...'" 3. Sawyer Lectures O'Reilly on 'Reality' of Sexually Active Kids Two weeks after seeming to take the side of a "sexual educator" who advocated giving birth control to middle school children, Good Morning America co-anchor Diane Sawyer exhorted the same position on Monday's show. Sawyer discussed with Fox News host Bill O'Reilly the case of a Maine school system voting to allow contraceptives to be given to children as young as 11. The GMA journalist operated from the assumption that such activity can't be stopped. She proposed to O'Reilly: "Yes, but if they're sexually active anyway, at some point, don't you have to address the reality of what is going on in the schools?" The ABC co-host tried to minimize the fact that parents won't be told specifically when birth control is given by claiming: "Well, but they've told the parents birth control pills may be given as part as the overall health." O'Reilly mocked that justification as "insane." On October 17, Sawyer discussed the issue with conservative commentator Glenn Beck and lectured: "You may not like it. You may want parents to go in and take care of their own children and make sure that they're not sexually active that young, but it's happening. It's happening." NBC Frets Over Income Gap, Touts Advocate of Higher Taxes on Rich Without a peg to anything in the news, NBC decided Monday night to base a story on a four-year-old contention by a professor that the middle class is worse off now than in the 1970s, followed by a piece promoting Warren Buffett's claim the rich don't pay enough in taxes. In fact, the federal income tax system remains quite progressive. "Not fair," Brian Williams teased with matching text on screen, "one of the world's richest men tells Tom Brokaw the taxes he pays aren't fair, meaning: Why is his tax rate so low?" Williams later praised Buffett's "brave campaign," but first he introduced a story on how "the gap between the super-rich and everybody else in this country seems to be growing. The middle class is caught in a kind of financial squeeze." Reporter Lee Cowan featured the claims of Harvard law professor Elizabeth Warren, a Huffington Post blogger who wrote a 2003 book about middle class families going broke. She declared: "Today's two-income family actually has less cash to spend than their one-income parents had a generation ago." Cowan ominously concluded: "A generation ago, the middle class was comfortable. These days, they're comfortable but scared, living on a wing and a prayer." Next, Brokaw touted Buffett: "It is well known that Warren Buffett is a contrary billionaire. Unlike most of his fellow billionaires, he believes that they should be paying a higher tax rate Buffett sees a fundamental injustice that he says touches all Americans." Buffett insisted: "The taxation system has tilted toward the rich and away from the middle class in the last ten years." Brokaw cued him up: "In your own office...you pay a much lower tax rate with all of your wealth than, say, a receptionist does."
At the anchor desk with Williams, Brokaw outlined Buffett's case for higher tax rates and how they won't inhibit hard work by investors: That's when Williams chimed in with his admiration: "Yeah, it's a brave campaign." [This item was posted late Monday night on the MRC's blog, NewsBusters.org: newsbusters.org ] The 7.65 percent Social Security and Medicare payroll tax, which is phased out as incomes reach about $100,000 ($97,500 in 2007), obviously becomes a smaller percentage as income rises above the phase-out level, but for those at lower incomes it's still less than the 15 percent capital gains tax rate, at least for those who are not self-employed. But Buffett's anecdotes, about his staff paying a 33 percent rate while he pays only about 18 percent, don't match real tax data for the overall population -- even after tacking on the FICA tax. Unexplored by NBC, how the wealthier pay a much higher income tax rate than those making less and pay a far greater share of income taxes collected than they represent as a percent of all income. In an October 5 Tax Foundation report on 2005 IRS data, Gerald Prante observed: "The tax code still remains highly progressive. The average tax rate in 2005 ranges from 2.98 percent of income for the bottom half of the earning spectrum [$31,000 and below] to 23.13 percent for the top 1 percent [over $365,000]." Adding on FICA, that still leaves the bottom half paying about ten percent. And thanks to the Bush tax cuts, particularly the expanded child credits, more families pay no income taxes.
Prante outlined how a small percent of taxpayers pay nearly all the income taxes, meaning the federal government is re-distributing wealth downward: An excerpt from Prante's illuminating "Summary of Latest Federal Individual Income Tax Data," published October 5 by the Tax Foundation: ....In sum, between 2000 and 2005, pre-tax income for the top 1 percent group grew by 19.1 percent. On the other hand, in that same time period, pre-tax income for the bottom 50 percent increased by 15.5 percent. This pattern of income loss and growth at the top of the income spectrum is the same during every recession and recovery. The net result has also been a sharp rise in federal government tax revenue from 2003-2005 compared to previous years. The IRS data below include all of the 132.6 million tax returns filed in 2005 that had a positive AGI, not just the returns from people who earn enough to owe taxes. From other IRS data, we can see that 90.6 million of the tax returns came from people who paid taxes into the Treasury. That leaves 42 million tax returns filed by people with positive AGI who used exemptions, deductions and tax credits to completely wipe out their federal income tax liability. Not only did they get back every dollar that the federal government withheld from their paychecks during 2005; but some even received more back from the IRS. This is a result of refundable tax credits like the Earned Income Tax Credit, which are not included in the aggregate percentile data here. Including all tax returns that had a positive AGI, those taxpayers with an AGI of $145,283 or more in 2005 constituted the nation's top 5 percent of earners. To break into the top 1 percent, a tax return had to have an AGI of $364,657 or more. These numbers are up significantly from 2003 when the equivalent thresholds were $130,080 and $295,495. Top incomes in 2005 are also continuing to surpass the peak they reached in 2000. At the height of the boom and bubble, $313,469 was the threshold to break into the top 1 percent, and then it fell to $285,424 in 2002 only to finally recover fully last year. The top-earning 25 percent of taxpayers (AGI over $62,068) earned 67.5 percent of the nation's income, but they paid more than four out of every five dollars collected by the federal income tax (86 percent). The top 1 percent of taxpayers (AGI over $364,657) earned approximately 21.2 percent of the nation's income (as defined by AGI), yet paid 39.4 percent of all federal income taxes. That means the top 1 percent of tax returns paid about the same amount of federal individual income taxes as the bottom 95 percent of tax returns. Average tax rates increased once again as the economy continues to grow, even though there were no significant pieces of tax legislation enacted in 2005. Overall, the average tax rate for returns with a positive liability went from 11.9 percent to 12.1 percent from 2003 to 2004 and then up to 12.5 percent for 2005. (Note this does not include any refundable credits.) The 2003 tax cut was the second in three years, but the tax code still remains highly progressive. The average tax rate in 2005 ranges from 2.98 percent of income for the bottom half of the earning spectrum to 23.13 percent for the top 1 percent. END of Excerpt For the complete report, with tables: www.taxfoundation.org Cowan's story recited Harvard professor Elizabeth Warren's numbers for increased costs facing middle class families, but failed to cite the high state and local taxes faced by those living in the most-populous states or how Warren also noted ways life has improved for the middle class. A 2003 Harvard Gazette article about her 2003 book, The Two-Income Trap: Why Middle-Class Mothers and Fathers Are Going Broke, reported: "Today's family is spending 21 percent less on clothing, 22 percent less on food -- including eating out -- and 44 percent less on appliances than they did a generation ago." See: www.hno.harvard.edu The MRC's Brad Wilmouth corrected the closed-captioning against the video for the back-to-back stories on the October 29 NBC Nightly News: BRIAN WILLIAMS: While the stock market is not far off its all-time highs, the gap between the super-rich and everybody else in this country seems to be growing. The middle class is caught in a kind of financial squeeze. Wage earners are finding it is getting tougher to make it from one paycheck to the next. That story tonight from NBC's Lee Cowan.
LEE COWAN: At Chicago's Faith Tabernacle Baptist Church, they're raising the rafters, but not raising much money.
WILLIAMS: After setting the table there on the economy, we should say all of this comes with a looming tax fight in Congress. The Democrats want to revamp the tax structure and get rid of some of the loopholes that the wealthy and corporations enjoy to pay less taxes. And it may surprise you to learn that one of the universally accepted richest guys in the world, Warren Buffett, feels he pays too little by percentage. This interesting campaign of his was unveiled in a recent conversation with Tom Brokaw, who is here with us in the studio with more on this. This is fascinating.
Matthews Offers Speech for Obama Use to Hit Hillary from Left Chris Matthews got his start in politics by writing speeches for Jimmy Carter and on Monday night the Hardball host returned to his roots when he espoused an anti-war screed he urged Barack Obama to use as a way to attack Hillary Clinton from the left: "Here's what I think Obama should say, starting tomorrow night, at the big MSNBC debate in my hometown of Philly. Quote: 'This country is in a rut. A rut that leads to endless war in Iraq, that leads to inevitable war with Iran. The American people and not just the Democrats want to get our country out of this rut. The great majority of them want this election to take us to a new place, not just led by someone smarter along the same rut. I promise to take us to that new place. Senator Clinton is smart, she's hard-working, she's serious but every vote she has cast, every word she has spoken says yes to the status quo...'" [This item, by Geoffrey Dickens, was posted Monday evening on the MRC's blog, NewsBusters.org: newsbusters.org ] The following excerpt is how Matthews opened the October 29 edition of Hardball: "Good evening, I'm Chris Matthews and welcome to Hardball. The 2008 election, that's the spotlight tonight. Iowa, which starts the whole thing January 3rd, is now a dead heat between Hillary and Obama. Here's what I think Obama should say, starting tomorrow night, at the big MSNBC debate in my hometown of Philly. Quote: 'This country is in a rut. A rut that leads to endless war in Iraq, that leads to inevitable war with Iran. The American people and not just the Democrats want to get our country out of this rut. The great majority of them want this election to take us to a new place, not just led by someone smarter along the same rut. I promise to take us to that new place. Senator Clinton is smart, she's hard-working, she's serious but every vote she has cast, every word she has spoken says yes to the status quo. She voted to approve the war with Iraq, she just voted with the hawks to target Iran. She always seems to choose the safe vote that leaves this country in the same rut -- the rut of fearful politics and endless war. I promise change, I promise a new approach. I promise deliverance from the rut of endless war in Iraq, inevitable war in Iran. So there you have it. It's for you, my fellow Democrats, to decide. If you think Bush would have succeeded with his policies, if they were better executed, then go with Senator Clinton. If you think the Bush policies were wrong, dead wrong, I'm with you.' Well that's what Senator Obama would say if he really wants to challenge Hillary Clinton for the leadership of the Democratic Party."
Sawyer Lectures O'Reilly on 'Reality' of Sexually Active Kids Two weeks after seeming to take the side of a "sexual educator" who advocated giving birth control to middle school children, Good Morning America co-anchor Diane Sawyer exhorted the same position on Monday's show. Sawyer discussed with Fox News host Bill O'Reilly the case of a Maine school system voting to allow contraceptives to be given to children as young as 11. The GMA journalist operated from the assumption that such activity can't be stopped. She proposed to O'Reilly: "Yes, but if they're sexually active anyway, at some point, don't you have to address the reality of what is going on in the schools?" The ABC co-host tried to minimize the fact that parents won't be told specifically when birth control is given by claiming: "Well, but they've told the parents birth control pills may be given as part as the overall health." O'Reilly mocked that justification as "insane." On October 17, Sawyer discussed the issue with conservative commentator Glenn Beck and lectured: "You may not like it. You may want parents to go in and take care of their own children and make sure that they're not sexually active that young, but it's happening. It's happening." See the October 18 CyberAlert for more: www.mrc.org [This item, by Scott Whitlock, was posted Monday afternoon on the MRC's blog, NewsBusters.org: newsbusters.org ] On another topic, Sawyer quizzed O'Reilly, who was appearing to promote his new book, "Kids are Americans Too," about the 2008 presidential race. She prefaced a question about Obama and Edwards getting tough on Hillary Clinton by asserting: "All right. This is 'take down Hillary' week, I believe, isn't it, George?" The reference to "George" apparently meant GMA guest-co-host George Stephanopoulos, who, one assumes was standing just off camera. (Sawyer looked in that direction.) O'Reilly couldn't resist mocking the obvious affection that the former Clinton operative-turned journalist still has for his former bosses. He quipped: "Who's taking down Hillary? You doing that, Stephanopoulos? You traitor." Sawyer could only frantically indicate that she meant other Democrats are trying to attack Mrs. Clinton. (As an example of Stephanopoulos's continuing ties with the Clintons, GMA audiences will remember that in late September he mentioned, on-air, the talking points e-mails that Hillary Clinton's camp sent him during a debate. See the September 28 CyberAlert for more: www.mrc.org A transcript of the October 29 segment, which aired at 7:40am: [Brief clip of O'Reilly Factor]
DIANE SAWYER: That's Bill O'Reilly doing what all of his viewers love, taking on the powerful, the former president of Mexico there. But now he is taking on a new constituency. His new book is called "Kids are Americans Too." And he is hauling some teens into the "No Spin Zone." Bill O'Reilly, examining the rights teenagers have in the Constitution. When do they have more right than adults? What about against their parents? What about against their schools, particularly on things like dress codes? Here he is, Emmy winner, best selling author, host of the "O'Reilly Factor," Bill O'Reilly."
-- Brent Baker
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