ABC News reporter Emily Friedman gets to be in the Super Stupid Hall of Crapola for this report about rich people and the $250,000 threshold.
Joining ABC News is the person who said this:
We are going to try to figure out how to make our income $249,999.00,” she said.
“We have to find a way out where we can make just what we need to just under the line so we can benefit from Obama’s tax plan,” she added.
Whah?! That's not how it works. Benen and Jameson Foser explain why this is a really idiotic thing to say. In short:
In reality, a family earning $255,000 will pay the higher tax rate only on its last $5,001 in income; the first $249,999 will continue to be taxed at the old rate. So intentionally lowering your income from $255,000 to $249,999 is counter-productive; it will result in a lower after-tax income.