Mark McHugh

Rick Santelli’s Math And Reason Fail

In Open Thread on Friday, April 13, 2012 at 12:20 am

I like Rick.  He is my hands-down favorite person on TV.  If he ran for President, not only would I vote for him, I’d campaign for him because I know his heart’s truly in the right place.  That said, Rick can really be a total fucking dunce at times. 

http://www.youtube.com/watch?v=bfRxFFhhWnk

Rick starts off by displaying he has no idea how many million-dollar earners there are (which probably means you should step away from the whiteboard).  If the White House actually published the utterly insane number (22,000) Rick attributes to them, we should all start looking for a new country immediately, but I digress.

Here’s a link to the IRS’s stats page:

http://www.irs.gov/taxstats/indtaxstats/article/0,,id=134951,00.html#_pt1

And here is the exact file Rick should have used:

http://www.irs.gov/pub/irs-soi/09in21id.xls

Note: Personally, I’d love to see a high-octane Santelli rant on how the fuck it could possibly be that as of April, 2012, the most recent IRS taxpayer data is from, wait for it, 2009!!!

In 2009, there were 230,323 filers with adjusted gross incomes of one million or more. 

Rick does some crazy shit where he takes $1,000,000 from all of them (like he’s taking all their money or something).  Here’s a much more reasonable thing to do: Let them keep a million, because that 230,323 actually earned $711.6B.  Hold that thought.

Next Rick asserts that our deficits are $200B a month, drawing another bullshit flag from yours truly.  While the March deficit was $198.2B, if Rick had divided the last six months borrowing ($792B) by six, he’d have discovered that $132B per month is a much more realistic number.

Taxing the Rich isn’t worth it in Rick’s mind because it would only pay off the deficit for one month.  Rick is now down the rabbit hole…

Let me point out if we let the rich keep the first million and took the rest for taxes, the government would get $481B, which would finance the deficit for 3.64 months, or 109 of the 365 days in the year.

Still not worth it, Brother?

Funny story, periods of real prosperity in America (like post-WWII, when income per capita outpaced debt per capita for 25 of 28 years) were marked by high taxes on high-earners.  If you’re looking to create another great depression, keep cutting taxes on the rich like they did in the 1920s.  Looky here.

Here’s the “Top Secret” part that no one seems to understand.  Raising tax rates on high earners doesn’t increase tax revenues, it forces people to avoid the tax.  Here’s a list of ways successful people can avoid those taxes:

Hire more people
Pay employees more
Increase benefits
Buy new equipment
Expand business

Rick turns himself into a walking, talking Italian joke when he asks, How are my kid’s opportunities effected by how many millionaires there are?”

If you don’t understand the answer to that question, Rick, you may as well build a time machine and send your kids to coal country circa 1875.  Spoiler alert: If your kids inherited the mental acuity displayed in this clip, they ain’t gonna be running the mine.

Fact-finding…FAIL
Arithmetic…..FAIL
Reasoning……FAIL

Note: Don’t miscontrue this piece as an endorsement of fucktarded goverment deficit spending.  It is not.  Horrific  fiscal policy and poorly reasoned tax policy are the yin and yang that will produce a total collapse that will make the Great Depression seem like an afternoon at the park.

Get it together, Santelli and quit sniffing those markers.

Previously:

https://acrossthestreetnet.wordpress.com/2011/07/13/raising-taxes-absolutely-promotes-job-growth/

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