Teabaggers Fail Tax Quiz
Jot down your own answers before clicking the link.
1. How much does the federal government collect in taxes as a % of GDP?
2. How much does the typical family making $50,000 per year pay in federal taxes?
3. Are taxes higher, lower or the same since Barack Obama was inaugurated?
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Reality-based conservative Bruce Bartlett worked with former Bush speechwriter David Frum to put together a quiz on taxes that was given to teabaggers at a demonstation on March 16.
The first question that was asked concerned the size of government. Tea Partyers were asked how much the federal government gets in taxes as a percentage of the gross domestic product. According to Congressional Budget Office data, acceptable answers would be 6.4%, which is the percentage for federal income taxes; 12.7%, which would be for both income taxes and Social Security payroll taxes; or 14.8%, which would represent all federal taxes as a share of GDP in 2009.
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Tuesday’s Tea Party crowd, however, thought that federal taxes were almost three times as high as they actually are. The average response was 42% of GDP and the median 40%. The highest figure recorded in all of American history was half those figures: 20.9% at the peak of World War II in 1944.
How did you do on this one? I was pretty close. I thought it was 18%, which was the number from 2007.
To follow up, Tea Partyers were asked how much they think a typical family making $50,000 per year pays in federal income taxes. The average response was $12,710, the median $10,000. In percentage terms this means a tax burden of between 20% and 25% of income.
Of course, it’s hard to know what any particular individual or family pays in taxes, but according to IRS tax tables, a single person with $50,000 in taxable income last year would owe $8,694 in federal income taxes, and a married couple filing jointly would owe $6,669.
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According to calculations by the Joint Committee on Taxation, a congressional committee, tax filers with adjusted gross incomes between $40,000 and $50,000 have an average federal income tax burden of just 1.7%. Those with adjusted gross incomes between $50,000 and $75,000 have an average burden of 4.2%.
Even though the Tea Partyers were specifically asked about federal income taxes, it’s possible that they were thinking about other federal taxes as well, such as payroll and excise taxes. According to the JCT, when all federal taxes are included, those earning between $40,000 and $50,000 have an average tax rate of 12.3%, and those earning between $50,000 and $75,000 pay a rate of 14.5%.
I really didn’t know the answer to this one. I thought under $10,000 but I didn’t realize that many paid a lot less than that.
Tea Partyers also seem to have a very distorted view of the direction of federal taxes. They were asked whether they are higher, lower or the same as when Barack Obama was inaugurated last year. More than two-thirds thought that taxes are higher today, and only 4% thought they were lower; the rest said they are the same.
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According to the JCT, last year’s $787 billion stimulus bill, enacted with no Republican support, reduced federal taxes by almost $100 billion in 2009 and another $222 billion this year. The Tax Policy Center, a private research group, estimates that close to 90% of all taxpayers got a tax cut last year and almost 100% of those in the $50,000 income range. For those making between $40,000 and $50,000, the average tax cut was $472; for those making between $50,000 and $75,000, the tax cut averaged $522. No taxpayer anywhere in the country had his or her taxes increased as a consequence of Obama’s policies.
I got this one right. I also knew that 90% of taxpayers got a tax cut.
Bartlett has some explanation for the discrepancy. I think the simplest explanation is a combination of conservative misinformation, greed (wanting to pay no taxes) and ignorance (herd mentality).
How did you do on the quiz?
Tags: Bruce Bartlett, taxes, Teabaggers
I got the second two right.
For the first question, I had no clue. But what about business taxes? I didn’t see them accounted for in the explanation.
In defense of the Teabaggers (wow, did I just write that?), my guess is that the general public at large would not do very much better. The overarching theme is that most people know very little about government or economics. There’s nothing wrong with that — most people don’t need to know about that stuff. That’s why public polling about specific policies is generally useless (unless it confirms your preconceived notions, of course).
My only issue is that if you’re going to complain about something, try to learn a little about it, first. So, I guess what I’m saying is I wouldn’t put down Tea Partiers in general for not being informed — only specifically the ones who come out to protest.
(Full disclosure: I was in the ballpark, but a little high on the first two, but knew the third.)
I think that alot of the complaints about tax burden may be for total taxes paid — Fed, State, Local — which added up can seem like alot. But Bartlett’s point is spot on — these people yelling and screaming have no idea what they are yelling and screaming about. And their media just stokes the ignorance. If their radio handlers would admit to the fact that 90% of Americans got a tax cut under ARRA, they would know that. But you are also talking to people who are way too credulous of the media they consume.
Common mistakes: A lot of people confuse the top marginal rate with the net tax rate. In fact the top rate is 39%, and the middle class top rate is 20-25%, which squares with the teabagger misconceptions.
One thing they always miss is taxes on wage income vs. investment income.
They also confuse deficit with national debt, nominal dollars with real dollars, PIT with total tax burden.
Republicans know these misconceptions and take advantage of them for propaganda purposes all the time.
The ‘Baggers are not based on reality, thier based on anger, rage and frequently arrogance.If they stop to get the facts they have to stop yowling and threatening.Besides, even if they knew the facts they would not accept them, much like the geezers who want to “keep the Federal govt. out of my Medicare!!!”
“In fact the top rate is 39%, ”
36% actually, that’s what Bush cut it to.
39% was the rate during the Clinton boom.
Besides, even if they knew the facts they would not accept them
Spot on. Many of the Tea Party types are operating in conspiricy theory territory. They know what they know, and no “facts” can tell them otherwise. Add to that the fact that they have a natural distrust of the government and the media (except of course FOX), so there’s no way you can “Torquemada anything”, to quote a movie.
The fact is that it is disingenuous to look at just income taxes. We actually pay a lot more in other taxes. FICA was mentioned, but in reality we pay both sides of it because it just comes out of our wages. It is like saying the seller and the buyer each pay half of the gross receipts tax. The price of the home is just higher. Our wages are reduced by the “employer half”. We pay all sorts of excise taxes on items ranging from energy to communication to cigarettes and alcohol. We pay duties on imports, but we don’t see them as they are embedded.
I personally am glad that Bush cut taxes on the lower middle class so much that most were dropped from the income tax rolls. You guys are the ones complaining about the “Bush tax cuts”. Unfortunately, they are set to expire.
When President Bush took office the federal take was 20.1% in taxes when he left it was 17.8% according to the Treasury Department. I do not know where these guys get 14 percent. The federal take of the economy is 24% and climbing. It is possible that we had such a short term fall due to the fact most companies had no profit and therefore paid no income tax that when combined with the temporary rebate in the Stimulus and subsequent legislation that it dropped to that level. I can not even verify that through Treasury. I think people can be forgiven not to know numbers that no one reported on. I personally don’t buy them until I can actually see government numbers not someone’s estimates.
The last official numbers that I see are in the 17 to 18 % range. The average take over the last 40 years has been around 18% (That’s right, the Bush tax cuts just took us to normal levels–how evil.)
I agree that taxes have not gone up yet. I also can see that they have passed tax increase in their budgets. They just don’t want to hit in the middle of a deep recession. Even Democrats aren’t that crazy. People know that the health bill raises the medicare tax. They know that it creates new taxes. They know that the budget seeks repeal of most of the Bush era tax cuts and raises taxes on investment.
The fact that the pig got a reprieve because of a storm does not mean that the trip to the slaughter house is canceled. He needs to keep trying to escape before it is too late.
They probably said 42% because they were thinking of 48%.
That is whay the average person pays in Federal, State and local taxes.
Too funny!
These people are not idiots; they’re corporate sheep and just don’t appreciate a black person in their house!
Simple. As. That.
wow, did i call it or what?