Tax Arithmetic Shows Top Rate Is Just a Starter

[mostlyconfused]

13. Or maybe it needs to be 121%

The CBO says that through the first two months of the government's current fiscal year the deficit has been $292 billion, compared to $240 billion for the same two months last year. If that rate of increase holds, we're looking at a $1.3 trillion to $1.4 trillion deficit this year. It won't hold because whether we go off the cliff or not there are going to be some increases in taxes. Not sure whether or not they'll cover the increased spending Obama has proposed. But...

Out of curiosity I ran the numbers...based on 2009 income tax filings, to cover a $1.35 trillion deficit we'd need to raise the rate on all taxable income above $75,000 to 121%. Obviously not possible, so instead we could raise the rate on all taxable income above $50,000 to 85%.