Tax cuts

Bush’s tax cuts for the “rich”

President (and candidate) Obama vowed to roll back Bush’s tax-cuts for the “rich” (set to expire December 31, 2010).

The tax cuts are set to expire at the end of 2010 unless Congress renews them, meaning their expiration would amount to an across-the-board tax increase for Americans who pay income taxes, roughly 60 percent of the country.

If no changes are made, the expiration of Bush’s tax policy for the “rich” will also raise the lowest 10-percent bracket to 15 percent.

A study by the Joint Committee on Taxation found that raising just the lowest income tax rate from 10 percent to 15 percent would cost 88 million taxpayers an average of $503 next year.

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If no changes are made, the expiration of Bush’s tax cuts for the “rich” will result in Federal income taxes going up in 2011 as follows:

If you* are a “rich” single making $34,000 a year – your Federal income tax is going up by 9%.

 If you* are a “very rich” single making $82,000 a year – your Federal income tax is going up by 10.3%.

If you* are an “affluent” single making $125,000 a year – your Federal income tax is going up by 10.3%.

If you* are a very affluent” single making $200,000 a year your Federal income tax is going up by 9.7%.

If you* are a “wealthy” single making $300,000 a year – your Federal income tax is going up by 9.3%.

* Are YOU defined as belonging to middle-class America?

If no changes are made, the expiration of Bush’s tax cuts by the end of 2010 will effect Federal Income Tax as follows:
– Raise the lowest 10 percent bracket to 15 percent.
– Raise the 25 percent rate to 28 percent.
– Raise the 28 percent rate to 31 percent.
– Raise the 33 percent rate to 36 percent.
– Raise the 35 percent rate to 39.6 percent.

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