Tuesday, September 18, 2012

Mitt Gaffeney

A faux pas.
A blunder.
A mistake.

An unintentional act or remark causing embarrassment to its originator

You know, when politicians dare to speak the truth - a moment when they slip up, when they let the guard down perhaps taken in by the comfort of their surroundings. Of course, the great thing about gaffes is that it's the easiest thing in the world to misconstrue them. Take a candy from a kid, take a gaffe and put a spin on it. 

Obama's guns-and-religion clinging remark was preceded by a commentary on the sad economic affairs caused by previous administrations. In reality, he was sympathizing with them. 

You didn't build that? Nope. Not the business, stupid! The roads and bridges that help your business

And to be fair to Romney, he didn't mean that he doesn't have to worry about that "47%". Just for the purposes of votes, of course he'll care about them after he's elected.

Yes, Mitt Romney's made lots of gaffes. Commenting on the London Games from his high vantage point of rescuer-in-chief of Salt Lake City, accusing his country's administration of apologizing on a day when a US Foreign Ambassador was killed.

This one's going to turn the election. Josh Barro thinks so too. 

You see, it's not fair to say that 47% of the American populace don't pay taxes and then imply that they're entitled, depend on government for everything etc.

Firstly, they DO PAY TAXES. The high number is the product of a depressed economy and a horrible financial crisis with mass unemployment. Before the crisis struck, this number was about 40%. 

Secondly, and this relates to the first point, THEY DO PAY TAXES, just not federal income tax. Not because they're tax evaders or tax avoiders (ahem!), but because they're simply under the bracket. What THEY DO PAY, is the payroll tax (which means they're employed) among others.

The people who don't pay the payroll tax too are, for the majority the elderly, especially those with disabilities. Students fall in this bracket too, but most go on to start contributing. 

CBO data in fact, estimates that low-income households (the poorest fifth), paid about 4% of income in 2007, a significant proportion when the average income was $18,400. The next fifth paid about 10.6% (avg income: $20k-$34k)

Best of all, when all federal, state and local taxes are taken into account, the poorest fifth pays about 16%! Here's the data for your own eyes (courtesy Center on Budget and Policy Priorities and Krugman).

It's not that this release flipped the election around. There's still no guarantee of an Obama victory. But I would like to believe that what this does, is guarantee Obama the popular vote victory (meaningless). 

And if it doesn't? 

That would say a lot about the American 'majority'.

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