Don’t Fall for the Right’s Favorite Lie About Taxes

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This is a classic example of how to lie with statistics. It’s shameless but effective propaganda, which is why the people with the most to gain from it pay propagandists to spread it widely. Anyone pushing this is trying to fool you, and you should ignore anything they say on any subject.

This means the rich pay a far lower payroll tax rate than regular people. A nurse making a salary of $50,000 per year pays (counting both the employee and employer side) 12.4 percent in OASDI taxes (for Social Security and disability insurance). But a sitcom star making a thousand times that, or $50 million a year, will pay the 12.4 percent only on the initial $130,000 of their salary, working out to a total OASDI tax rate of just 0.03 percent on their $50 million. And because OASDI taxes are only levied on earned income — meaning, money you make from a job — a billionaire investor with a $50 million annual income from dividends and capital gains will pay exactly zero percent in OASDI taxes. (Keep Reading)

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