Public debate over a plan backed by some progressive Democrats to increase the marginal tax rate has shown how common misconceptions can make it difficult understand the way America’s tax system works. The Onion breaks down some widely held myths about taxation in the United States.
MYTH: Tax cuts for the rich makes income inequality worse.
FACT: Tax cuts have helped revive the once struggling market for gold-plated luxury cars.
MYTH: Earning more money can actually result in lower overall income after taxes.
FACT: You will never make more than $84,201.
MYTH: The U.S. has some of the most extreme income inequality in the world.
FACT: We got ourselves nestled comfortably in the sweet spot between Tunisia and Turkmenistan.
MYTH: You can deduct that.
FACT: No, you can’t.
MYTH: The estate tax would hurt farmers.
FACT: Monsanto does not count as a farm.
MYTH: Reducing the corporate tax rate leads CEOs to hire more people.
FACT: Reducing the corporate tax rate leads CEOs to hire more people to remodel their summer home.
MYTH: Income tax is actually illegal under the Constitution.
FACT: This is why your uncle Barry is in jail.
MYTH: Conservative tax policies only help the rich.
FACT: This is only true if you actually look at the numbers.