Just got into a discussion with a financial advisor about top income tax rates. He mentioned Obamacare actually pushes the top rate to 42% instead of the Clinton era top rate which l believe was 39.6%. He said he heard it on CNBC. Anyone know of this? Is this true?
if your adjusted gross income is over $200,000 ($250,000 married filing jointly)
it's also 0.9% on earned income.
so if you're in the top bracket due solely to earned income, the rate would be 40.5%.
but if 100% of your income were unearned (dividends, interest, etc.) the rate would be 43.4%.
actual mix would be somewhere in-between, so it could be 42% if the mix is right.