Tuesday, May 17, 2011

The Tax Foundation Pulled This Post From Its Website

link here to article

Many were surprised that the conservative Tax Foundation posted a critique of the WSJ Editorial on US income distribution. They had reason to be surprised, the CEO of The Tax Foundation has removed the post from its website. I had posted the critique before but I thought that it would be a good idea to post it again since it is now rare and more valuable. It also shows a strong connection between the management of the foundation and the WSJ. I wonder if the research team that posted the critique has resigned.

In case you don't recall the prior post, the WSJ provided a classic example of lying with statistics. It published a graph that made income distribution in the US look like a bell curve and concluded that the middle class received the majority of the income. They did this by using different sized segments across the horizontal axis. The research team arranged a graph with appropriate percentages and showed that the top 5% receive much more income than any other group. The amount of income going to every group increased with income. If you missed this the first time, take a look at the graphs and make up your own mind about the WSJ Editorial.

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