That's $250,000 in TAXABLE INCOME.......

[FrenchieCat]

Just so that we are clear! That's after all tax deductions are taken.

Just so that there is no confusion!

[vaberella]

1. Thanks for the clarification FrenchieCat...

Damn "Financial experts" don't have a damn clue. Don't people who earn about 350,000 gross after taxes could go down to 250K. The thing is people don't want to hear it and the media is a shit hole that wants to keep pushing the stupidity.

[Goblinmonger]

2. Oh, and don't forget that it isn't 35%

on the entire $250,000, just the top bracket.

[tekisui]

4. Good point to remind people of.

If you make $255,000 only that $5,000 above the $250,000 will be at 35%.

[NMDemDist2]

19. and you'll owe an additional $150 for that extra $5000

big whoop


that's what I call a "positive problem"

[Jeff In Milwaukee]

22. I remember watching Obama explain that in the campaign

For even moderately wealthy people, this is not a huge tax increase.

[Wetzelbill]

7. wow, ok now I get it.

That is outstanding. I never really realized that.

[cottonseed]

13. Dems need to EDUCATE people on tax policy.

If more people knew this they'd be asking us why we aren't increasing the top marginal tax rate even more.

I would bet that 95% of people in this country don't realize that. What we're talking about here is about a 3% increase on ONLY the amount above $250K. You can run your Mom and Pop small business :) and even make $300K in TAXABLE PERSONAL INCOME and you'd still only see that small rate increase on the extra $50K.

[liberal N proud]

3. I wish I had to suffer paying those taxes

It would hurt so good.

[DesertFlower]

5. thanks for the clarification.

i don't know why they're pissing and moaning so much. Jesus H. Christ.

[kestrel91316]

6. That entire $250k would have to be taxed at AT LEAST 75%

(and the person be supporting a family of 4 singlehandedly) before I'd give it more than a YAWN, let alone concern for their welfare. And then my concern would amount to: spouse needs to get a P/T job now.

I live embarrassingly close to the poverty level. I don't want to hear people whining about taxes on their $250k. They can't possibly work any harder, at the end of the day, than I have for the past 17 years.

[county worker]

10. Working harder isn't the point. It's what skills they come to the market with.

If all you needed to do to get more money is to work harder than most of us would be rich.

Generally you trade your skills for money. If your skills are in demand you make more money than if they weren't.

I could work hard at being a rocket scientist or I could work hard at picking grapes. Should I get paid the same for both?

I agree that people with more income should pay higher taxes. I would not tax poor people.

[Terry in Austin]

11. Ideally, maybe

People who make the really serious money aren't getting it because there's a higher demand for their skills. Their money is making their money for them. Who needs skills when you have capital!

[county worker]

14. Yep you are right.

[Infomaniac]

8. Don't Forget the 401(K) Contributions Reduce Taxable Income Too

That defers tax on $15K in income.

[elifino]

9. I think it is $16,000 this year

[Thickasabrick]

18. It's way more than that if you are over 50 eom

[cottonseed]

12. And that's only a 3% increase on only the amount ABOVE $250K

Anything under is taxed at the same rate.

Republicans are trying to muddy this debate. You can tell they're trying to make us believe that it's $250K in revenue with their small business argument. If you run a small business with however many employees and you can't find enough deductions to get yourself under $250 in taxable PERSONAL income than you I think you're doing pretty good. And the extra 3% on the portion ABOVE $250K is still only a small increase. Hell, you can make $300K and the new increase only goes against the $50K over.

This tax only effects the really, really rich. It might be the difference between do I get the yacht this year or the helicopter because I can't get both.

** on edit: i may be wrong quoting 3% but that's the last figure I had

[cottonseed]

15. Historical chart of the Top Marginal Tax Rate

Take a look at this chart:

http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=213

And see if you can make a correlation between the change in rates and when the idea of GETTING RICH became such a fixture in this society. Amassing enormous amounts of wealth in this country used to be pretty well regulated.

[Skidmore]

16. K&R...

with pleasure. Now let us all repeat this to everyone we know. I sure hope the President and the congress do the same.

[TBF]

17. Great clarification - I think some could benefit from

learning how much repubs also make off their capital gains deductions. These folks really cleaned up under Bush's reign.

[rufus dog]

20. to add ...

That would be $3,000 on each 100k of taxable income over 250k. So when you sit back and put the pencil to paper you realize that it is around 500k before you would see any benefit. I did this a couple of years ago, took my extra costs in fuel and utilities (minus adjustments for inflation) and figured out the break even point. Then I figured it out at 750k concluded, it would be worth the extra cost not to have the assholes in control.

[cottonseed]

21. Also, part of the fuss is lowering the top bracket from $350K to $250K

That was also a component of the bush tax cut. In 2000 the top marginal rate of 39% was applied to anything after $288K. Bush's tax cut lowered the rate while bumping up the threshold to where it is today at a rate of 35% on income over $336K.

I have no issues what so ever with Obama's plan. It's a more equitable system. I just wanted to point out that there will actually be 2 components to the rollback.