Jonathan Chait makes a point that should be included in every article about tax rates, because it is so frequently misunderstood: "The main problem with the article is that it presupposes that individuals making $200,000, or couples earning $250,000, will pay higher taxes. They won't. The tax hike only applies to income over that threshold. When you go from $250,000 to $250,001, you only pay a higher tax rate on that one extra dollar. Your taxes will go up by a few cents. If you earn $300,000, you will pay a slightly higher tax rate on the last $50,000 of your income — less than a couple thousand dollars. Even people making half a million dollars a year won't be 'taxed at rates similar to those who make $5 million,' because only half their income will be taxes at the top rate."
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That untaxed extra dollar means JOBS, Pinko.
Exactly. I work with some pricey supposedly smarty parts sales people who think that earning dollar # 250,001 will retroactively create a higher rate for their first $250K of earnings. Groan on many levels.
With the exception of 1988-1992, when the marginal tax rate for the top tax bracket was slightly less (28-31%, compared to 35% today), the marginal tax rate for the top bracket is lower than at any time since the 1930s. For the first bracket it's lower than at any time since the 1940s. But there's no reason we should let those facts get in the way of a good Tea Party.
Cucumber sandwich?
Hold the watercress.
250k seems kind of arbitrary considering that during the Clinton years the threshold was 400k.
Hey, you never always know.
Don't even MENTION the Social Security wage base cap.
This is why this is true: Everyone gets a tax cut! If you cut the top tax bracket, only the rich get that tax cut! If you cut the bottom 3-4 tax brackets, everybody gets a tax cut…
It's also worth noting that that $250K is your taxable income, not your take-home pay. If you've got kids or a mortgage or student loans or any of a variety of other offsets, your taxable income is going to be substantially lower. Even childless debtless renter couples get to have $18,700 off their take-home pay due to the standard deductions and exemptions.
Except many deductions (like student loan payments) are phased out for people who make in excess of $100k and things like mortgage deductions are limited by alternative minimum tax.
Huh, whoops. Guess I'd know that if I wer one of the richie riches making $250K. WHATEVER TAX THEM GRIND THEM UP INTO HAMBURGER FOR THE POOR HA HA HA.
I'm sorry, but it still doesn't adequately address the compelling argument of Neener Neener Neener v. Blah Blah Blah.
I have never met anyone who complains about high taxes who can tell me what their actual tax rate is.
It's always too damn much.
Roads! Ffft. Why can't they just drag their steamboat over the mountain to get to work like I do?