In a November 23 article, Washington Times chief political correspondent Donald Lambro falsely asserted that President-elect Barack Obama's tax plan would provide tax credits "to the 49 million tax filers who will owe no taxes -- a proposal his critics have compared to welfare." As Media Matters for America previously noted, all American workers are required to pay Social Security and Medicare taxes under the Federal Insurance Contributions Act (FICA). Obama's published proposal would "[c]ut taxes for 95 percent of workers and their families with a tax cut of $500 for workers or $1,000 for working couples" [emphasis added].
From Lambro's November 23 Washington Times article:
President-elect Barack Obama's economic agenda does not call for cutting the income-tax rates. Instead, he proposes a "refundable" tax credit for low-to-middle-income workers that would allow them to take $500 for individuals and $1,000 for joint filers off their tax bill. And, he would send a check for those amounts to the 49 million tax filers who will owe no taxes -- a proposal his critics have compared to welfare.