Ed Fugate CPA

Bill O'Reilly is an idiot.

Bill O’Reilly’s inequality disaster: Fox News’ loudest pundit makes a complete fool of himself on taxes Fox's resident war hero has literally the worst possible take on income inequalityIt’s pat at this point to observe that income inequality will be a defining issue of the 2016 race. Everyone is wondering just how far Hillary Clinton will shift to the left on economic policy to keep the Elizabeth Warren wing of the Democratic Party from revolting, and Republicans are paying lip service to the problem while pushing the policies that exacerbated it in the first place.Sensing this rising concern over income inequality among the 2016 candidates, Fox News’ Bill O’Reilly stumbled dewlap-first into the issue last night and offered his take on the state of the American economy. And, as is his wont, he got almost everything completely wrong. To Bill O’Reilly, the real inequality is found in the government’s unfair taxation of wealthy people like himself.Let’s break down Bill-O’s treatment of income inequality piece by piece to get a better handle on just how thoroughly bad his analysis was.O’REILLY: This year 2015 the feds will gather more tax dollars than ever before in the history of the U.S.A. — about $3 trillion. That’s because since taking office, President Obama has proposed a whopping 442 tax increases. Not counting 20 others associated with Obamacare.Has Obama really proposed 442 tax increases? Nope. Not even close. It’s a bogus talking point that Grover Norquist’s anti-tax group manufactured, and they arrived at that number through vigorous double-counting and by throwing in a bunch of things that aren’t actually tax increases. More to the point, the mere act of proposing a tax increase does not actually increase taxes or raise revenues. According to the Congressional Budget Office, tax revenues in 2015 are going up in part because certain business tax breaks are expiring, but also because the economy is growing, and more jobs means more taxable income.Continuing on:O’REILLY: As you may know, Americans earning more than $400,000 a year must pay close to 40 percent of their income to the feds; Social Security taxes increased from 4.2 to 6.2 percent — all workers pay that; and itemized deductions which can bring tax bills down, now being phased out for high wage earners and profitable businesses.The takeaway from this is that Bill O’Reilly doesn’t appear to understand how marginal tax rates work. In 2014, any single filer who made more than $406,750 in income was subject to the top marginal rate of 39.6 percent. This does not mean they paid “close to 40 …

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