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Page Not Found: Was Reuters Right or Wrong?

If you click this link you’ll arrive at a page that, for now, reads, “Our apologies, the requested page was not found. Please double-check the URL for proper spelling and capitalization.”

Earlier today that link contained a story that drew heavy fire from the White House and Media Matters. Reuters produced an analysis of Obama’s budget that contained the following:

The Obama administration’s plan to cut more than $1 trillion from the deficit over the next decade relies heavily on so-called backdoor tax increases that will result in a bigger tax bill for middle-class families. . . .

The targeted tax provisions were enacted under the Bush administration’s Economic Growth and Tax Relief Reconciliation Act of 2001. Among other things, the law lowered individual tax rates, slashed taxes on capital gains and dividends, and steadily scaled back the estate tax to zero in 2010.

If the provisions are allowed to expire on December 31, the top-tier personal income tax rate will rise to 39.6 percent from 35 percent. But lower-income families will pay more as well: the 25 percent tax bracket will revert back to 28 percent; the 28 percent bracket will increase to 31 percent; and the 33 percent bracket will increase to 36 percent. The special 10 percent bracket is eliminated.

Investors will pay more on their earnings next year as well, with the tax on dividends jumping to 39.6 percent from 15 percent and the capital-gains tax increasing to 20 percent from 15 percent. The estate tax is eliminated this year, but it will return in 2011 — though there has been talk about reinstating the death tax sooner.

The article then dissected the impact of the alternative minimum tax under Obama’s budget (it’d be painful) then provided a number of key bullet points about the budget:

Middle-class families also will find fewer tax breaks available to them in 2010 if other popular tax provisions are allowed to expire. Among them:

  • Taxpayers who itemize will lose the option to deduct state sales-tax payments instead of state and local income taxes;
  • The $250 teacher tax credit for classroom supplies;
  • The tax deduction for up to $4,000 of college tuition and expenses;
  • Individuals who don’t itemize will no longer be able to increase their standard deduction by up to $1,000 for property taxes paid;
  • The first $2,400 of unemployment benefits are taxable, in 2009 that amount was tax-free.

Robert Gibbs, Obama’s Press Secretary, called Reuters and angrily denounced the article as a lie. Media Matters attacked Reuters, purported providing a breakdown on everything Reuters got wrong.

And Reuters may have gotten it wrong. But what is interesting is that Reuters pulled the entire article instead of fixing it. What exactly did Reuters get wrong? The White House says the Bush tax cuts are not going away, except for people who make over $250,000.00. But is it true? The Democrats have wanted to scrap the whole package of tax cuts.

When RedState or most other sites, on the left and right, get something wrong, we strike through it, note the error, and proceed with corrections. Reuters did not do that. Why? And what about the bullet list at the bottom? Does the White House dispute that it has proposed that those go away? Thumbing through the proposal, it looks like Reuters got that all right.

So what did Reuters get wrong?

COMMENTS

  • Flagstaff

    The only way to keep track of the media is to have your own copy. Good thing you did.

    Has anybody seen a copy of the proposed Obama budget that Reuters worked from?

  • INC

    Reuters bumped it to them: Backdoor taxes to hit middle class.

    It’s kind of strange. Passive-Aggressive behavior on the part of Reuters towards Gibbs and the White House?

  • Spartan4Life

    Hey, Gibbs and Obama can spin it any way they want but the fact is that the Bush Tax Cuts will expire at the end of this year.

    Everyone, including low and middle income earners got significant tax relief from the Bush policies.

    They can say they are going to reinstate some of those cuts that were particularly popular but until those policies are enacted by Congress, Reuters and the rest of us will have to assume they are going away, no?

  • majorkong

    Investor’s business Daily also ran the story.

    http://www.investors.com/NewsAndAnalysis/ArticlePrint.aspx?id=519783

  • http://itsaboutfreedom.proboards.com/index.cgi IronDioPriest

    … that increasing taxes on citizens now, when the economy is on such precarious, shifting ground, will twist the knife and increase the bleeding.

    It is becoming painfully obvious that this is their goal. They must be stopped. The situation is becoming dire. I believe the Socialists intend to bring the world’s engine of capitalism to its knees, and force the American people to come crawling to government for sustenance.

  • Spartan4Life

    Stop Obama for 3 years until we can get him out of there. Take no prisoners.

  • Spartan4Life

    Pretty sure not too many people going to think that’s a good idea.

    Go on offense and make them defend.

  • RedBeard

    If this article going missing as it did was the result of Reuters kowtowing to its masters in the Obama administration, the free press is indeed in trouble.

  • kchand

    It probably needed to be sent over to the Ministry of Truth for ‘correction’.

  • Spartan4Life

    If you want to read all 2000+ pages of the Obama budget I am sure it is posted on whitehouse.gov. Good luck.

    The gist is that the Bush Tax Cuts expire this year. They provided tax relief to everyone, not just the evil rich. Once gone, everyone’s taxes going up, up, up, and up. That’s what Reuters reported.

  • KeepOhioRed

    ADVISORY: Backdoor taxes story

    The Feb 1 story headlined “Backdoor taxes to hit middle class” is wrong and has been withdrawn. The story said lower-income families will pay more under tax provisions scheduled to expire Dec 31. The Obama administration’s budget calls for the extension of those tax provisions for households earning less than $250,000. There will be no substitute story.

    http://news.yahoo.com/s/nm/20100202/us_nm/us_budget_backdoortaxes_advisory

  • GT350

    Well, you skipped over the Alternative Minimum tax, as most people do. It is inching down on the middle class, since the limits set in 1968 were never indexed for inflation. I guess it’s the reverse: The American Public has been inflating its way into AltMin’s reaches.

    Essentially, Alt-Min negates the benefits of many people’s home interest deduction and state tax deduction. For those of you who wanted a flat tax: Here it is, it’s called Alt-Min. And it is starting to hit the middle class directly.

  • jayburd

    and publish the results. It’s still a no-win.

  • http://www.hakubi.us/ Neil Stevens

    If the government said cut it, you left a white gap in the paper (until they banned the white gaps because they were becoming laughably common).

    Only Reuters is a willing collaborator.

  • RedBeard
  • RedBeard

    Finger cramp.

  • neyney

    It is telling that the MSM state controlled media outlet Reuters so willingly takes its marching orders from the Obama administration. The most outrageous over-the-top budget gets put out yesterday and the MSM has nothing to say. Typical.

  • bk

    Obama won’t even say he’s increasing taxes on the so-called rich – instead he and the Dems come up with tortured language like “letting the Bush tax cuts for the rich expire”.

  • http://www.OverbrookResearch.com TheYeomanFarmer

    I figured that Winston Smith is simply working overtime.

  • dkons21

    His own projections according to the Investor’s article show he’ll still be deficit spending by three quarters of a trillian dollars in 2015… What happened to having a budget surplus… ya know… the kind of thing that would *decrease* the deficit.

    Dear Mr. President,

    You’re an idiot.

    Sincerely,

    Anyone capable of basic arithmetic

  • partyof1

    stood up to the Administration, but Obama broke his tax pledge long ago.

    Obama and the Democratic-controlled Congress have already increased tobacco taxes – which disproportionately hit the poor – to pay for extending health coverage to 4 million children in working low-income families.

    http://www.msnbc.msn.com/id/31806096/

    I think if you get into the way [cap and trade] was written, it’s a huge tax and there’s no sense calling it anything else. I mean, it is a tax. So it — and it’s a fairly regressive tax

    -WARREN BUFFETT

    http://www.abcnews.go.com/ThisWeek/Politics/story?id=7948866&page=1

    and Obamacare has been a middle class tax from the get-go:

    …But what is pretty obvious is that there will be millions of middle-class Americans who won’t qualify for subsidies, yet will be forced to either buy insurance or pay a fine. While people focus on the penalty aspect of it, if you’re making $45,000 a year and the government begins forcing you to spend thousands of dollars each year for a product, that’s a lot of money, and it’s undeniably a tax on the middle-class.

    http://spectator.org/blog/2009/08/03/why-health-insurance-mandates

    And what about the biggest back-door tax of all, inflation caused by printing trillions of new dollars? This hits the POOR disproportionately because they are less able to defend against it.

    “I pledge that under my plan, no one making less than $250,000 a year will see any type of tax increase,” he said. “Not income tax, not capital gains taxes, not ANY kind of tax.”

    http://www.ctv.ca/servlet/ArticleNews/print/CTVNews/2008091 /obama_ad_080912/20080912/?hub=World&subhub=PrintStory

  • grumpy_old_soldier

    I first read the article that was linked on Drudge, Later, coming back to Drudge, I saw the link to the original article and the link to the “retraction”, which hadn’t been retracted yet.

    So I saved a copy as a “web page archive”.

    Gotta love the Internet!!

  • AceInTX

    or can I complain and get any unflatering story I don’t like yanked from their feeds?

    I mean…come on…how long before we have Pravda and a Department of what’s acceptable news as an arm of the US Justice department writing news stories for us?

  • GregInFla

    And sent it to friends. Sure glad I did. I wonder what the author Terri Cullen at Reuters.com thinks of speaking the facts (as the laws now stand).

  • GregInFla

    the entire article without running afoul of the legal authorities? Just wondering…

  • http://www.hakubi.us/ Neil Stevens

    Copyright still attaches.

  • cableguymn

    Gone there to.

  • GregInFla

    Rush covered the withdrawn article as well. So just like the Tebow ad(s), it got more coverage than it would have if no one had objected.