Harry Reid is Either Ignorant or Lying

Speaking from the floor of the United States Senate yesterday, Majority Leader Harry Reid resorted to an outright lie to sell his plan to increase tax rates on high income business owners and investors:

Senate Republicans…oppose our plan [for] a tiny sur-tax on on a tiny fraction of America’s highet earners…Republicans call our plan a tax on job creators, but I say so-called job creators…Millionaire Job creators are like Unicorns – they don’t exist.  That’s because only a tiny fraction of people who make over a million dollars, probably less than one percent, are actually business owners.

The pie chart displays data available to anyone who takes the time to look on the IRS website.  Seventy six percent of taxpayers who reported more than $1 million in adjusted gross income were owners of small businesses that must report income and expenses on the owners’ personal tax return.

There are only two possibilities:

  • The most likely possibility is that Reid is fully aware of this IRS data and simply lied through his teeth.
  • The other possibility is that Harry Reid, Majority Leader of the Senate, arguably the second or  third most powerful position in Washington really is ignorant of the truth and repeated something he heard from an unreliable source (MSNBC?).

Either way, he is wrong.  Surprisingly he did not repeat the economic theory of the political-media establishment, that a tax hike on small business owners would have no effect on job creation.  Apparently, the Democrats have polling data that tells them what is only logical, that a tax increase transfers resources from the business owner to the government, making her less able to add new employees to her payroll.

1 Comment so far

  1. Elliptical review on December 16th, 2011

    Strongly suggest adding a “google+” button for the blog!