CNN's Crowley understates Making Work Pay tax credit

››› ››› MORGAN WEILAND

Candy Crowley claimed of the Making Work Pay tax credit: "The average tax cut is somewhere between $10 and $13." But Crowley did not explain that those figures apply per week, adding up to an annual tax credit of $400 per individual and $800 for families.

During the April 15 edition of CNN's The Situation Room, senior political correspondent Candy Crowley misleadingly claimed of the tax cut included in the American Recovery and Reinvestment Act of 2009, "The average tax cut is somewhere between $10 and $13." But Crowley did not explain that those figures apply per week, adding up to an annual tax credit of $400 per individual and $800 for families.

As CNNMoney.com senior writer Jeanne Sahadi explained in a March 31 article about the Making Work Pay tax credit included in the economic recovery package, "As a rough guide, singles eligible for the credit might get between $10 to $15 per paycheck if paid weekly; for those married filing jointly, they're likely to see an extra $15 to $20" [emphasis added]. Sahadi went on to note that "[t]he credit is ... worth up to $400 a year for single filers and $800 for joint filers" [emphasis added]. Indeed, the section of the act establishing the Making Work Pay tax credit states:

ALLOWANCE OF CREDIT. -- In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of --

''(1) 6.2 percent of earned income of the taxpayer, or

''(2) $400 ($800 in the case of a joint return).

From the April 15 edition of CNN's The Situation Room:

CROWLEY: April 15 is not the best time to ask Americans whether they think taxes are too high, but a perfect day for the president to remind them.

PRESIDENT OBAMA [video clip]: We've passed a broad and sweeping tax cut for 95 percent of American workers.

CROWLEY: The average tax cut is somewhere between $10 and $13. While the president talked up his tax cut, an assorted group of tax protesters held tea parties, meant to echo the Boston Tea Party tax revolt.

Posted In
Economy, Taxes
Network/Outlet
CNN
Person
Candy Crowley
Show/Publication
The Situation Room
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