Comments for Obama To Cut Taxes For the Rich

Obama To Cut Taxes For the Rich

2009-05-12T16:12:58Z

Nice little scoop from Bob Williams of the Tax Policy Center, who wades into the weeds of the Obama administration's tax plans and returns alive, bearing news that the administration actually cutting taxes for some high-income earners:

The administration's tax proposals call for hiking the top two tax rates from 33 and 35 percent to 36 and 39.6 percent and raising the threshold to get into the new 36 percent bracket. For couples, that bracket would start at $231,300 in 2009, up from $208,850; the starting point for singles would climb from $171,550 to $190,650.

The rate hike we've known about for a while. But the change in threshold is, I believe, new. Of course, Williams quite sensibly complains that changing the threshold (1) makes the original proposal less progressive and (2) will result in raising less revenue. All sensible. But it will surely help insulate the president from the criticism that he is only using the tax code to plunder.

Comment from rbb on 2009-05-12

2009-05-12T16:27:31Z

If I'm not mistaken, Obama has consistently said that taxes would not increase under his plan for couples making less than $250K. Given that promise, the increase in the threshold from $209K to $231K was perfectly predictable: If you increase the marginal rate applicable to some portion of incomes under $250K, but you don't want to increase the total tax burden until income exceeds $250K, then you need to increase the thresholds. As such, I wouldn't say this is really "new" news -- it's a logical consequence of the stated approach to tax policy. Nonetheless, thanks for dragging it into the light.

Comment from janinsanfran on 2009-05-12

2009-05-13T02:38:14Z

I doubt very much that this will insulate against charges of plunder. A substantial fraction of well off people think all taxes for the general welfare are plunder.