[Anonymous]

Disclaimer right up front: I’m not trying to have a political debate here. I actually lean right with my political views, but I believe this guy deserves to be lampooned. My dad sent this video to me and unfortuanetly believed a lot of it. I felt compelled to pick all the errors out of it. I see our job as (future) CPA’s as to protect the public from idiots like this, whether they are republicans, democrats, or just plain old idiots. Without further adiue, have fun with this:

https://www.youtube.com/watch_popup?v=-wIfI2whjiM

[mikeyT17]

Aside from his math in not considering deductions, marginal rates, etc., I'd have to say he's pretty dead on. Considering that neither he nor the majority of his audience are tax professionals tying down an exact amount of additonal money that you will owe if you make $250,000 is irrelevant. Here Dick Morris says you'll owe $40K more well in reality maybe you'll $25K more. Either way upper middle class tax burden is going to go up drastically when the Bush tax cuts expire. Are you suggesting that won't be the case?

REG - 75
BEC - 82
AUD - 90
FAR - 78

[porschify]

Oh man, all this time I could have been deducting my mortgage payments…to the 1040X I go!

Edit: @mikey “Considering that neither he nor the majority of his audience are tax professionals…” I believe this is the point of the OP. Individuals that do not have knowledge in a subject matter should not spread misinformation.

REG- 81
BEC- 72,76
AUD- 67,88
FAR- 78

Done!

[mikeyT17]

Right so if my father sent me this link I'd say jeez Dad you know your taxes aren't gonna go up by 40K, but your still gonna pay a shitload more… don't see the big issue.

REG - 75
BEC - 82
AUD - 90
FAR - 78

[mikeyT17]

I was just curious so I actually tried to calculate this out… assuming the Bush tax cuts expire and these new policies go into effect… for someone making 250K…

Change in tax rate: My estimate $3,600 Per Dick Morris $12,000

If Change is SS witholding: $8,000 $8,000

If State tax deduction eliminated: $3,000 $7,500

If Mortg Interest deduction eliminated: $5,000 $8,000

Total: $19,600 He says $40,000

REG - 75
BEC - 82
AUD - 90
FAR - 78

[momto5]

Well fortunately (or unfortunately, depending on how you look at it), I'm not even close to having this affect me! While I think some of his estimates were probably a tad generous, the point is still that it will be a large tax increase for these people. And didn't we learn in BEC that when the economy is depressed, the government should reduce taxes rather than raise them?

FAR - 92 (4/27/12)
AUD - 96 (7/17/12)
BEC - 92 (8/30/12)
REG - 91 (11/12/12)

[jaredo155]

Speaking from an accounting perspective I think everyone has already pointed out the severe discrepancies in the amounts presented, but also as others have mentioned that wasn't the intent of the video. Speaking from a legal perspective, the reality is that probably the only one of the objectives described that the president would be able to pass is allowing the Bush era tax cuts to expire. Speaking as a previous tax professional and someone who majored in Economics the first go round in school, the proper response if the economy is depressed is to reduce taxes on the middle and lower classes while offsetting those cuts with either spending cuts or increased tax on the wealthy (this clearly depends on if you take the supply side perspective or the Keynesian approach). Personal taxes on the wealthy in no way effect how many jobs are created, or the salaries of employees for organizations those wealthy may run. From a purely academic angle, supply side or trickle down economics (whichever you want to call it) has been proven time and time again not to work. So the way I see it this video is inaccurate from an accounting and legal perspective, and is encouraging of flawed economic ideals and principals.

AUD - 2/2013 - Passed!
BEC - 5/2013 - Passed!
FAR - 8/2013 - Passed!
REG - 11/2013 - Passed!
"Do or do not, there is no try." - Yoda

[Mjs157]

First $106,800!!!! not just $106,000.

[Rebecca_AZ]

I hate this video! Don't people fact check anymore?!

I passed in 2012!

BEC - PASSED - I'M DONE!!!
AUD - PASSED (finally!!)
REG - PASSED (Twice - lost credit first time)
FAR - PASSED!

[sacredtheory]

Fact check the RNC & the DNC…it's absurd.

BEC: Passed
AUD: Passed
REG: Passed
FAR: Passed

Jared

[Author]

Replies