Why Democrats Irritate the Crap Outta Me...

[Spider]

[Spider]

[Kane]

[Professor]

[OGPhilly]

[PoS]

[PoS]

[The Dude]

[OGPhilly]

Well, you have Obama who wants to just let the Bush tax cuts expire for people over 250 and then the Chuck Schumer crowd, who seem more inclined to keep tax cuts for people in the 250 range but have rates go back up for a higher income bracket, starting somewhere between 500 and a million.

At 250K you aren't living like Gatsby, but we're talking about the rate going up like 3 points. Sorry, but if you make over 250K and you can't afford a modest increase in your marginal rate for income only above the 250 mark, you're doing something wrong. So I'm definitely good with Obama's plan, but I would also have further rate increases as you get to the higher levels. Problem is that Schumer's idea is to set a rate increase for a higher bracket in order to avoid raising anything on people in the 250 range. So it doesn't seem likely that they'll come together and combine what I see as the best of both plans into something new, and even if they did, that's too much to try to get by the House GOP.

[The Dude]

Ideally it would be both, as you say. Create new brackets at $500k, $1 mil, $5mil, and $10 mil. Or something along those lines.

Of course, the real tax reform needed is putting capital gains tied to income rates. And while the Obama plan has it go back to 20%, l pretty much hear no one talking about tying it to income which would be the best thing to do.

edit: A FTR, it's not $250k+ of income, it's Taxable income which means you have to earn even more than $250k. And you're only taxed on the amount above it, so for most professional making between $250-300k they're taxes will go up by pennies.