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Top 1% Would Pay Two-Thirds of Higher Taxes Under Obama

*from www.bloomberg.com, April 22, 2013 (To view original article click here.)

Take Away #1: The top 1% of U.S. taxpayers would pay 67% of higher taxes called for in 2023 under President Barack Obama’s budget proposal.

Key Facts and Figures:

  • This according to an analysis released today by the nonpartisan Tax Policy Center in Washington.
  • Households making as little as $30,000 a year would pay some higher taxes.
  • By 2023, households making between $30,000 and $40,000 would pay an average of $54 more than if lawmakers made no changes.
  • Households making between $500,000 and $1 million would pay an average of $13,474 in higher federal taxes.

Take Away #2: High-income and low-income families would encounter different tax increases in Obama’s budget plan.

Key Facts and Figures:

  • The plan, released on April 10, calls for raising about $1 trillion more over the next decade.
  • “Top earners would be subject to a minimum tax rate of 30%, limits on their deductions and an increase in the estate tax rate to 45% from 40%.
  • They would also have limits on the ability to contribute to tax-favored retirement accounts and wouldn’t get to pay lower capital-gains rates on their carried interest.
  • Lower-income households would receive benefits from expansions of tax credits for child care and college tuition.
  • For some, those would be outweighed by increases in tobacco taxes and Obama’s proposal to link tax brackets and the standard to the slower-growing chained Consumer Price Index.

Take Away #3: The inflation change included in the budget plan would break the president’s campaign promises to prevent tax increases for married couples making less than $250,000 a year and individuals making less than $200,000.

Key Facts and Figures:

  • The inflation change included in the budget plan was suggested as part of Obama’s pitch for a bipartisan budget deal.
  • “It is something we are prepared to do as part of a balanced deficit-reduction package,” said Treasury Secretary Jacob J. Lew.

*To view original article from www.bloomberg.com click here.

Filed in: Economy, Latest

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