{"id":252512,"date":"2017-10-27T16:00:00","date_gmt":"2017-10-27T20:00:00","guid":{"rendered":"https:\/\/admin.rushlimbaugh.com\/?p=252512"},"modified":"2021-04-28T10:05:48","modified_gmt":"2021-04-28T14:05:48","slug":"mick-mulvaney-explains-who-really-pays-taxes-and-why-every-tax-cut-can-be-called-a-tax-cut-for-the-rich","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2017\/10\/27\/mick-mulvaney-explains-who-really-pays-taxes-and-why-every-tax-cut-can-be-called-a-tax-cut-for-the-rich\/","title":{"rendered":"Mick Mulvaney Explains Who Really Pays Taxes — And Why Every Tax Cut Can Be Called a “Tax Cut for the Rich”"},"content":{"rendered":"

RUSH: Friday, we\u2019re gonna be starting with the audio sound bites here at the top. The U.S. economy was expected to grow in the last quarter at 2.7% but now they\u2019ve actually revised the number up, and it\u2019s now official. “U.S. Economy Grew at a 3% Rate From July to September.<\/a>” Under Obama, the economy grew at an average of 2.1% a year.<\/p>\n

\"\"It says here he had many quarters where growth exceeded at 3%. He didn\u2019t! That\u2019s the whole point. He didn\u2019t. Obama\u2019s economic growth sometimes was less than 2%. There\u2019s no way Obama was in the three percents, especially here, what does it say, “many quarters.” Anyway, the economy is booming in a lot of sectors, and it is one of the great unspokens and, as such, unreferenced aspects that are positive of the Trump administration.<\/p>\n

And the Democrats are running around wondering why they haven\u2019t been able to destroy Trump and why they haven\u2019t really been able to do much damage in terms of approval numbers and so forth. And the answer is what James Carville always said, “It\u2019s the economy, Stupid.” And consumer confidence rolling into the Christmas season is said to be an all-time high. By the way, this is including the hurricanes. Despite the hurricanes, which are always used as an excuse for a slowdown in economic activity, this 3% growth happened despite the hurricanes.<\/p>\n

Also, Mick Mulvaney, who is a Rush Baby<\/a>. We\u2019ve interviewed him for The Limbaugh Letter,<\/a> and he is the director of Office of Management and Budget. You know, it turns out yesterday I was wrong about something, and it\u2019s rare when I\u2019m wrong. It\u2019s so rare, people love pointing it out.<\/p>\n

By the way, Dawn, were you up today at 3 o\u2019clock to order the new iPhone X? (laughing) No, I don\u2019t get up at 3 o\u2019clock to order phones. Even if I was up at 3 o\u2019clock, I wouldn\u2019t have ordered that. No, no, no, no, no, no, no. I was just teasing. I knew you weren\u2019t up. It\u2019s not on your list of prioritized interests. That\u2019s why I asked you. I was just being facetious.<\/p>\n

Anyway, I thought yesterday that the top 1% are paying 40% and the top 10% were paying 60% of total tax revenue. There was a poll, it\u2019s a Fox News poll, and it\u2019s got some of the screwiest results in it. Something like 80% of the American people don\u2019t think the rich are paying enough, unusually high numbers of people who think the middle class are paying too much. And none of that is accurate, but it\u2019s what people think. And so that\u2019s why there\u2019s not gonna be a tax rate cut for the top 1%, or maybe even top 5%\u2019s \u2019cause of that polling data. There\u2019s not a politician in the world that wants to be seen giving the rich a tax cut when 80% of the people or 78% think the rich aren\u2019t paying enough already.<\/p>\n

But the real numbers are even more shocking. Try this, folks. Ninety-five percent of all taxes are paid by the top 20%. That is an all-time high. It has never been there. Last night, Georgetown University, Mick Mulvaney,<\/a> who is the director of the Office of Management and Budget, spoke about Trump\u2019s tax reform plan. And the moderator was somebody named Cathy Koch, and she said, “The way the benefits of this tax cut falls across different income taxes is going to be a real arithmetic trick.”<\/p>\n

Does anybody know what that question means? This is a moderator of the event. Let me read the question. “The way the benefits of this tax cut falls” — it should be “the way the benefits of tax cut fall.” But “the way the benefits of this tax cut falls across different income taxes is going to be a real arithmetic trick.” What is the different income taxes? Now, I, your host, know what she meant. The way the benefits of this tax cut fall across the different rates, the different brackets, is gonna be a real arithmetic trick. No, it isn\u2019t. There\u2019s no trick here. There aren\u2019t any arithmetic tricks. Arithmetic, math, is just pure logic. Anyway, here\u2019s Mulvaney\u2019s answer to whatever that question was.<\/p>\n

\"\"MULVANEY: Top 20% pay 95% of the taxes. If you break the income tax universe into what we call quintiles, so equal sized 20% columns, the first two columns, the first quintile and the lower quintile, don\u2019t pay any taxes at all. In fact, they net positive. We pay them when they file a tax return. That middle quintile, which you might describe, some people do, as middle class, pays an effective rate in the low single digits. And all of the taxes are paid by folks in the top two quintiles, and that last quintile pays almost fully, 95% I think, of the taxes.<\/p>\n

RUSH: This is just unreal. Now, if you\u2019re still confused about a quintile, it\u2019s just dividing by five instead of by quarters. So they\u2019re dividing the taxpayers into five different groups here, and each one of them equals 20%, obviously. So the top 20%, that top quintile, pays 95% of all income taxes. The top 20%! Now, let me give you another startling statistic. Now, this is not gonna be exact because I haven\u2019t seen the recent revision of this.<\/p>\n

But five years ago this was true. If you earned $55,000 a year, you were in the top 10% of income earners in America. Is that not shocking as well? Now, we think of the top 20% as the gazillionaires, the billionaires, the millionaires — and they\u2019re in there, but you really need to go to the top 1% to get the gazillionaires and the billionaires, and the top 5% to pick up everybody that are millionaires — and maybe that wouldn\u2019t even do it. Maybe the top 2%, 3% at most, is what you would do if you want to include millionaires in this.<\/p>\n

So the top 20%, that\u2019s a pretty broad income spectrum there. It still is just unreal that the top 20% are paying 95% of all tax revenue. You balance that against what the Fox News poll yesterday<\/a> found. Nobody is aware of this. Well, not nobody. You are, because we\u2019ve made this a seminal point of this program for all of the years that we\u2019ve been here, because it matters. But a full 80% of taxpayers are paying 5% — and, as Mulvaney said, the bottom 40% are paying nothing and in effect are being given a refund every year via the earned-income tax credit.<\/p>\n

There simply isn\u2019t any truth to the notion that the rich are not paying their fair share, and there isn\u2019t any truth to the notion that the middle class are paying most of the burden, and then Mulvaney… Now, this gets tough to listen to, because it\u2019s numbers, but he tries to explain the math behind the so-called tax cut for the rich.<\/p>\n

MULVANEY: People always ask all the time: Why do you want to give a tax cut to the rich? Here\u2019s the math. We have a progressive tax system, which means that if you make a million dollars and a make $50,000, we both pay the exact same rate on the first, let\u2019s say, $20,000. And then from the next 20 up to my 50 — and her next 20 to her next 50 — we pay the same. I think it\u2019s now… I know it\u2019s 12% or 15%. I can\u2019t remember what the brackets are, and then she goes on to make her higher rates and I stop, right? Well, if you want to give me in the middle class a cut you take my 15% rate say down to 10%, right? That gives a middle class a cut. Guess who else benefits from that? She does, because she pays the same rate on the way up the brackets. You can sit there and do nothing and lower the rates on the middle class and all other things being equal you\u2019re gonna give the rich a tax cut.<\/p>\n

\"\"RUSH: Now, let me walk you through this. Did you…? Snerdley, did you understand that? (interruption) Yeah, it\u2019s tough when you\u2019re using numbers. It\u2019s really tough when you\u2019re using numbers. I\u2019m gonna use different examples than the Office of Management and Budget director. I\u2019m gonna use $100,000 \u2019cause it gives us more room to play here. We\u2019ve got the brackets, and we\u2019ll use the brackets of 39%, 35%, 28%, and 15%, and we\u2019re talking about income of $100,000. If you make a $1 million, you still make $100,000 and to start with.<\/p>\n

Not all of your $1 million is taxed at the… Well, no. In the case of millionaires, it is. In the case of millionaires, they don\u2019t step through this. They charge you 39% on pretty much everything. So let\u2019s say it\u2019s income of $500,000. The person that makes $100,000 will pay on the first $10,000 or $20,000 and he earns the 12% or 15% rate, and then the next bracket of that $100,000 a year until pay at 28%. And then the last percentage of that $100,000 he earns he will pay the top rate of 35%. That\u2019s the marginal rate.<\/p>\n

The marginal rate is the last rate you pay on the income you earn. So if you earn $100,000 and somebody earns $50,000, you pay the same percentage on the income that\u2019s equal: $50,000. The person making $100,000 earns $50,000 first, and the person earning $50,000, they pay the same rates on that they pay the same rates on that $50,000. Then the guy that\u2019s earning a hundred has two more rates to pay on his way. He\u2019ll have 28% and 35%, and I don\u2019t know where the 35% kicks in.<\/p>\n

But the point is the guy earning $100,000 is paying the same percentages on half of his income as the person making the person making $50,000. Mulvaney\u2019s point is if you cut the 12% rate and the 15% rate, you\u2019re also gonna be cutting that rate for the guy making $100,000 because the first $50,000 he makes will also be subject to the new lower rates. So his point is, when you lower rates for the middle class, you cannot help but lower rates for everybody, because everybody is gonna be subject to all of those brackets up to the total taxable income they report.<\/p>\n

We\u2019re talking taxable income here: $100,000 versus $50,000. So the person earning $50,000 will pay taxes… Well, actually, this person doesn\u2019t pay much at all, but in the math example we\u2019re using, that person would pay a percentage at 12% and a percentage at 15% and be done. The person making $100,000 would pay the same 12% and the same 15% up to his first $50,000, but then two more rates kick in for him: 28% and 35% on his way to a hundred grand.<\/p>\n

But those first two rates — the 12% and the 15% — if they\u2019re cut to 10% and 12%, they\u2019re gonna be cut to 10% and 12% for everybody. So Mulvaney\u2019s point is, you cut the middle class tax rates, it is axiomatic, it\u2019s automatic, and it is unavoidable that the rich are gonna get the same tax cuts on the first $50,000 they earn. Not everything, just the first $50,000. So that\u2019s what he was trying to explain here.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Let me give you one more stat here, folks, to illustrate who really pays taxes. What\u2019s the population of New York City? Give me the number. What…? (interruption) Just the city. I\u2019m not talking about the Tri-State area. Eight million people. Well, it\u2019s probably 7.5 million because half a million have probably have left since the last time, but we\u2019ll figure eight million, okay? Would you believe that one half of New York City\u2019s tax revenue…? There are eight million people, and one half of the city\u2019s income is paid by 34,500 people? They are the rich.<\/p>\n

\"\"They are the people not paying their fair share: 34,500 people out of eight million are paying nearly half (or as Clinton would say, “contributing”) nearly half of the city\u2019s taxes. You remember Clinton when he was raising everybody\u2019s taxes referred to them as “contributions.” We needed more “contributions” from people. But, see, even these facts are not gonna sway anybody. It\u2019s just etched in stone that the rich don\u2019t pay their fair share, that the rich get all these tax breaks, that the rich aren\u2019t paying anything, and that the middle class is bearing the full burden, and people believe it because the Democrats and…<\/p>\n

Hell, it\u2019s not just Democrats. The media, everybody\u2019s been spreading that BS for decades. And it\u2019s become part of the traditional class envy.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Steve in Attleboro, Massachusetts. I\u2019m glad you called. Welcome to the program. What\u2019s up?<\/p>\n

CALLER: How are you? Not too much. Second-time caller, Rush, and it\u2019s an honor to speak to you. I love the subject; it\u2019s great. But I have take us back to taxes and New York City. You\u2019re right, probably 37,000 people pay those taxes. But you gotta remember, people are paying very, very high rent. You know, it costs a lot to live in New York City. So these people that are paying the taxes could not get that money to pay it if the little guys like us, you know, the poor guys, so to speak. You know, the middle class is paying that tax inevitably through, you know, paying their rents and store prices and going to stores, shopping, et cetera, et cetera. You got it? You understand?<\/p>\n

RUSH: I think so, but I want to take some time with this.<\/p>\n

CALLER: Oh, not the great Rush Limbaugh. Come on!<\/p>\n

RUSH: I just want to make sure I heard you right, is all.<\/p>\n

CALLER: Okay. No, no, no. I\u2019m not making fun of you. I love you. I love you, Rush.<\/p>\n

RUSH: You\u2019re on a cell call, which to me you sound like Charlie Tuna, okay?<\/p>\n

CALLER: Oh, I\u2019m sorry.<\/p>\n

RUSH: That\u2019s number one. Number two, did you say that while it may be 37,000 or 38,000 New Yorkers that are paying over half the freight, they\u2019re still paying very, very high income tax rates?<\/p>\n

CALLER: No. What I\u2019m saying is —<\/p>\n

RUSH: Okay, hang on. Hang on. I could have sworn you said that, and it\u2019s a good point. But don\u2019t go away.<\/p>\n

\"\"BREAK TRANSCRIPT<\/p>\n

RUSH: I had a chance to go back and read the transcript of what you said. And now I get it. You were saying they weren\u2019t paying high rents; you were saying the middle class is paying high rent, right?<\/p>\n

CALLER: Well, the point I\u2019m trying to make is I think the point you\u2019re trying to make on your show a lot is that the rich in this country are paying the freight of all the bills, on paper. You\u2019re right. On paper it looks that way. But you have to understand, the rich are getting their money from somebody, and in New York City it\u2019s in the form of rents or commerce in the stores, et cetera.<\/p>\n

RUSH: Right, right.<\/p>\n

CALLER: They would have the money to pay these high taxes if the people weren\u2019t paying them. You know what I\u2019m saying?<\/p>\n

RUSH: Right. I get — (crosstalk)<\/p>\n

CALLER: — and the freight.<\/p>\n

RUSH: What you\u2019re saying, while sounding like you\u2019re in a barrel six feet underwater, to me — I\u2019m sure anybody else that can hear you sound normal, but that\u2019s why it took me awhile to figure this out. What you\u2019re saying is that the middle class are actually providing the revenue that these rich New Yorkers are using to pay all these taxes?<\/p>\n

CALLER: Bingo. Got it.<\/p>\n

RUSH: That\u2019s called making the complex understandable, folks. That\u2019s called weighting it all down to the bare essence. Now, you mentioned rents, so obviously this is a bugaboo to you. You think obviously the landlords of New York are paying a high freight of the income tax revenue and they\u2019re getting that money through these exorbitantly high rents, right?<\/p>\n

CALLER: Well, that\u2019s called capitalism, isn\u2019t it?<\/p>\n

RUSH: Yeah, but I\u2019m not arguing with that.<\/p>\n

CALLER: Right.<\/p>\n

RUSH: My point is I don\u2019t think it\u2019s landlords that are paying the gigantic percentage of freight. I think it\u2019s Wall Street people.<\/p>\n

CALLER: Oh, okay. Okay, I didn\u2019t know that\u2019s what you were really referring to, but it\u2019s not just Wall Street. I mean, everybody has to pay to live in New York, and it\u2019s not cheap.<\/p>\n

\"\"RUSH: But we\u2019re talking about 37,500 people who pay 50% of the total New York City, not state, we\u2019re talking New York City tax revenue.<\/p>\n

CALLER: Yes.<\/p>\n

RUSH: Now, I don\u2019t doubt that rents are sky-high. I used to live there and paid them. I know exactly that. But I don\u2019t think it\u2019s just landlords ripping people off. There are a lot of people on Wall Street that are making gazillions of money and in the tech sector especially, and they are paying a percentage. You\u2019re being contentious with me for no reason here.<\/p>\n

CALLER: What\u2019s that mean? What\u2019s that mean? Contentious.<\/p>\n

RUSH: It means you\u2019re arguing with me for no reason here. I haven\u2019t criticized anything you\u2019ve said.<\/p>\n

CALLER: Correct. I just didn\u2019t want you to misinterpret this call because definitely I\u2019m on your side, I watch you guys on TV, I listen to Sean. Believe me, I am a conservative. But the only point I like to make to you, Rush, is, yes, these people are paying the taxes, but inevitably the money — it\u2019s capitalism. It\u2019s people paying for things to give these rich the money to pay these —<\/p>\n

RUSH: Okay. I need a clarifying question. Are you upset about that or not? I can\u2019t tell from the tone of your voice.<\/p>\n

CALLER: Oh, no, no, no, no. I\u2019m not upset at all. Not a little bit. Nope. I\u2019m just saying this is how the world goes. It\u2019s called capitalism. People pay bills, people pay their bills, people pay — you know, that\u2019s how the world goes around.<\/p>\n

RUSH: Okay.<\/p>\n

CALLER: I mean, seriously. I agree with it.<\/p>\n

RUSH: What we have here is female logic in the minds of a guy, and that\u2019s why I have — (laughing)<\/p>\n

CALLER: Go ahead. I\u2019m sorry.<\/p>\n

RUSH: (laughing) I just —<\/p>\n

\"\"CALLER: — have a problem with — sorry. I can\u2019t believe I got through to you, Rush. I can\u2019t believe I —<\/p>\n

RUSH: Steven, this is iPhone X day. Did you get in line, try to get one, did you stay up to 3 o\u2019clock and try to order one?<\/p>\n

CALLER: I would definitely do that, yes.<\/p>\n

RUSH: No. Did you?<\/p>\n

CALLER: Oh, no. I\u2019m sorry, I didn\u2019t. No.<\/p>\n

RUSH: All right. I don\u2019t have any iPhone Xs because if you didn\u2019t order one within two minutes last night you have to wait five to six weeks to get yours.<\/p>\n

CALLER: Okay.<\/p>\n

RUSH: But wait. What I do have is a bunch of iPhone 8s and 8 Pluses. And I want to tell you something. I have an 8 Plus and it\u2019s the best phone I ever had. The only difference in the 8 Plus and the X is the screen is full screen on the X, and it\u2019s OLED screen versus LCD, and it doesn\u2019t have the Face ID stuff. But aside from that, the 8 Plus, it has wireless charging, it has fast charging, it has the new fastest chip, same chip that\u2019s in the X. It\u2019s got the same camera system with the same improvements. It\u2019s the same phone, but it\u2019s not in the body of the iPhone X. And I was just gonna offer you one if you\u2019d like one.<\/p>\n

CALLER: I would definitely like one, yeah, thank you. That\u2019s really, really nice of you, Rush.<\/p>\n

RUSH: I\u2019m happy to do it. Now, which size do you want? Do you want the 8 which is the 4.7-inch screen or the Plus which is the five-and-a-half-inch screen.<\/p>\n

CALLER: Well, I would ask for your recommendation, please, on that. Which one do you think would be the best one?<\/p>\n

RUSH: The Plus.<\/p>\n

CALLER: All right. And I\u2019ll take that one.<\/p>\n

RUSH: All right. And you\u2019ve got two colors. You\u2019ve got black or gold. Which one do you want?<\/p>\n

CALLER: I better choose black. I won\u2019t go any further than that. I want to be, you know, politically correct.<\/p>\n

RUSH: What do you think there\u2019s a racial component to choosing the color of your phone? I\u2019m not gonna go any further — it\u2019s typical New Yorkers choose black because it doesn\u2019t show the dirt. Okay, so, Steven, I need you to hang on here so that Mr. Snerdley can get your address so we can send the phone out to you. I\u2019m gonna include a 29-watt charger and a cable to go. Don\u2019t use the charger that comes in the box. Use what I send you and it\u2019ll charge the phone faster than it\u2019s ever been charged. You\u2019ll be dazzled by this thing.<\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: Try this, folks. Ninety-five percent of all taxes are paid by the top 20%. That is an all-time high… There simply isn't any truth to the notion that the rich are not paying their fair share, and there isn't any truth to the notion that the middle class are paying most of the burden.<\/p>\n","protected":false},"author":49,"featured_media":252519,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[12,1],"tags":[],"yoast_head":"\nMick Mulvaney Explains Who Really Pays Taxes - And Why Every Tax Cut Can Be Called a "Tax Cut for the Rich" - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2017\/10\/27\/mick-mulvaney-explains-who-really-pays-taxes-and-why-every-tax-cut-can-be-called-a-tax-cut-for-the-rich\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"Mick Mulvaney Explains Who Really Pays Taxes - And Why Every Tax Cut Can Be Called a "Tax Cut for the Rich" - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: Try this, folks. Ninety-five percent of all taxes are paid by the top 20%. That is an all-time high... There simply isn't any truth to the notion that the rich are not paying their fair share, and there isn't any truth to the notion that the middle class are paying most of the burden.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.rushlimbaugh.com\/wp-content\/uploads\/2017\/10\/FBFB-102717-Income-Taxes.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"George Prayias\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"17 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/admin.rushlimbaugh.com\/#website\",\"url\":\"https:\/\/admin.rushlimbaugh.com\/\",\"name\":\"The Rush Limbaugh Show\",\"description\":\"Excellence In Broadcasting\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/admin.rushlimbaugh.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2017\/10\/27\/mick-mulvaney-explains-who-really-pays-taxes-and-why-every-tax-cut-can-be-called-a-tax-cut-for-the-rich\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.rushlimbaugh.com\/wp-content\/uploads\/2017\/10\/FBFB-102717-Income-Taxes.jpg\",\"contentUrl\":\"https:\/\/www.rushlimbaugh.com\/wp-content\/uploads\/2017\/10\/FBFB-102717-Income-Taxes.jpg\",\"width\":600,\"height\":315},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2017\/10\/27\/mick-mulvaney-explains-who-really-pays-taxes-and-why-every-tax-cut-can-be-called-a-tax-cut-for-the-rich\/#webpage\",\"url\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2017\/10\/27\/mick-mulvaney-explains-who-really-pays-taxes-and-why-every-tax-cut-can-be-called-a-tax-cut-for-the-rich\/\",\"name\":\"Mick Mulvaney Explains Who Really Pays Taxes - 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