Sen. Harry Reid’s Unicorns: Fact Checking A Whopper

There are 236,883 tax filers with incomes of a million dollars or more. By Harry Reid’s count, only one percent, or 2,361 of them, are business owners, and a tiny fraction of them create jobs. I do not know what Harry means when he says “a tiny fraction of a tiny fraction.” If we let 5 percent represent Harry’s “tiny fraction,” we are left with 118 businesses owners who earn a million or more and create jobs. Yes, they are only slightly less rare than unicorns, if Harry is to be believed.

This leaves 236,765 million-dollar-plus tax payers, most of whom are “hedge fund managers and wealthy lawyers” who “don’t create jobs and don’t need tax breaks.”

My Google search for Harry Reid’s quarter million hedge fund managers and wealthy lawyers came up empty handed. I could identify at most sixteen thousand “wealthy lawyers and hedge fund managers,” not Harry Reid’s quarter million.

Well, Harry Reid’s numbers leave much to be desired, but maybe he is right that millionaire business owners do not create jobs.

What does the IRS have to say about this? Millionaire tax filers earn a total taxable income of $623 billion, on which they pay the highest average rate (30 percent) of any tax bracket. (Either Warren Buffet’s secretary has an incompetent tax accountant or Buffet has some pretty juicy tax breaks. I think the latter is more likely). A 1.9 percent tax surcharge on million-dollar-earners would yield $11 billion, assuming those shifty millionaires take no evasive action to avoid the tax.

via Sen. Harry Reid’s Unicorns: Fact Checking A Whopper – Forbes.

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