Thursday, December 6, 2012

Under Obama's Tax Plan, True Millionaires Still Get A Break

Right now, if you are making $200,000, individually, or $250,000, married filing jointly, your effective income tax rate is 33%.  If you make a million dollars, the effective rate is only 2 percentage points higher than that at 35%.

Under Obama's proposed rate changes, those in the $200,000 and $250,000 or more categories will be hit with a new rate of 36.9%; a 20% increase in taxes from 33% to 39.6%.  If you're making a million dollars or higher, that increase to 36.9% is only a 13% increase in your taxes; up from 35% to 39.6%. 

Even when Obama claims that millionaires should pay their fair share by paying more, he gets it wrong. That's because the millionaires still get better treatment than those below them under Obama's proposed tax rates.  The percentage of increase is far less.  All this is so much political theater and ideological B.S and not hardly some concept of fairness.

--- Federal Tax Tables:

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