President Obama Seeking Tax Cut for the Well-to-Do?

I guess I missed the memo. Apparently, we are not America anymore. I lived the American dream- at least for awhile. I took a risk, started a company, made huge personal sacrifices, worked day and night, and now, 10 years later, I provide employment for 100 people. When you factor in all the dependents of my employees, there are nearly 300 people who depend on me getting up in the morning to generate the work that provides them, or their spouse, mother, or father with a high-paying job. Now, as a person that earns well over $250k, I am the root of all evil. Never mind that I have not had a real vacation in 10 years. Never mind that I have worked 80 hours per week. Never mind that I have missed family commitments to keep the company running. That is part and parcel of being an entrepreneur. The irony is that at this point getting up and working each week is not even something I want to do- but I have to do it because there are 300 people who are counting on me for a job so they can pay their rent and fulfill their dreams to buy a house, put their kids through college, etc.
That is the downside. However, the upside is that my efforts have provided economic security for my family. Except that upside is now going away. Instead of focusing on providing economic freedom and opportunity, the government is focused on taking money from some people (me) to give to others (who if given the reverse circumstances would likely not return the favor).
A fundamental question is where is it written that we are all supposed to make the same MONEY??? I finished high school, put myself through college, put myself through graduate school, saved money, and made an investment to start my business. What sacrifices did the person who dropped out of high school make? They took the easy way out. They work 40 hours, I work 80 hours. They have a mundane job that has low pay, while I have a challenging, high-stress job that pays well. Instead of recognizing that different efforts and different inherent talent will yield different economic outcomes, we are trying to “level the playing field” by ending the economic program that has made us the dominant economy in the world. How does that make sense? I am not going to apologize for being successful. My suggestion to those who want what I have is to work hard and make the sacrifices I have made.

Hmmm. $177k is the salary of our Senators and Congressmen & -women. This tax proposal raises the level before the higher rate hits from $171k to $190k. That way they can vote for it and not have it affect their automatic pay hikes for a few more years.

My husband and I have a small dental practice in Atlanta. We make right at 250K. Sounds like a lot until you factor in 4 children, dental school loans, mortgage for an avg. priced home in the area... You get the picture. Because we own our own business we also pay our payroll taxes which means that we currently pay 47% of our salary to the govt. Under Obama it will go up substanstially, possibly 70%. 70 cents of every dollar we earn will go to taxes. How is this fair or enocurage people to utilize their potential? We will probably cut back our practice to fall into a lower bracket. This will result in letting some staff go or reduce hours. Most dentists in the area have already started.

Just so we are clear, Taxing a minority more is ok as long as its the 5%of earners who pay 90% of the taxes in this country. That is fair , how dare anyone not want to pay for majority. I think no one in this country should earn more than 100k a year and the rest should go the poor. All of us should stop eating and drinking after all if we weren't here there would be no global warming. We live in the greatest country in the world and as promised The Potus,BHO,Messiah...etc, is going to change that , that you can believe in

Just so we are clear, Taxing a minority more is ok as long as its the 5%of earners who pay 90% of the taxes in this country. That is fair , how dare anyone not want to pay for majority. I think no one in this country should earn more than 100k a year and the rest should go the poor. All of us should stop eating and drinking after all if we weren't here there would be no global warming. We live in the greatest country in the world and as promised The Potus,BHO,Messiah...etc, is going to change that , that you can believe in

Oh, please. We've already had tax hikes under Obama. He lied and we all know it.

Just so we are clear right wingers are whining about Obama cutting taxes for people making a decent living.

Obama could cure breast cancer tomorrow and right wingers would whine that he is anti-men

"No, actually the top rate would start at $231,000, which is quite obviously less than $250,000."

No, that is the next to top rate.

From the article.

But the threshold for the new 36 percent bracket would be increased from $171,550 to $190,650 for individuals, and for couples from $208,850 to $231,300 in 2009.

Meaning: if you're an individual who makes between $171,550 - $190,649, or part of a couple making between $208,850 - $231,299, you will go from the 33% tax rate to the 28% tax rate.

Obama is doing exactly what he said he would.

From the transcript of the second debate:

[Mr. Obama] " So nobody had a question for senator well I don't know let me just make up more points -- governors he here's what I can tell the American people. 95% of you won't get a tax cut. And if you make. Less than 250000. Dollars less than a quarter million dollars a year. Then you will not see one dime's worth of tax [increase] now."

One searches in vain for a mention of "families" or "heads of households."

Here is the way they understood Obama's tax pledge at the HuffPo on September 27:

"Mr. Obama almost took the bait - and then switched! Instead of being driven by Mr. McCain he described his tax cut plan, saying 95 percent of people will get a tax cut 'and if you make less than 250,000, you will not see one dime's worth of tax increases.'"

No mention of "families" there at all. (They appear to be quoting him directly from one of the debates.)

Actually, I think the final assessment of who gets their taxes increased and who gets them increased--and by how much--will have to await the details of what is proposed. As Stephen Sprueill pointed out on March 3, the analysis requires more than simply looking at the marginal rates (as we learned with Clinton):

"While it's true that increases in marginal rates only impact the 250,000th dollar and above, that is NOT true for when the income level is used as a trigger for phase-outs. For example, if the child tax credit disappears after a certain level of income, by earning one dollar less, you can save a nice tax credit. Same for AMT triggers, deduction phase-outs, earned income credits, joint filing credits, etc.

"Since Obama has not specified exactly how he intends to implement this magical 'not one dime increase for those earning less than $250K', we cannot be sure, but it is likely that in addition to whatever marginal rate increase is passed, there will also be all manner of phase-outs that kick in that reduce credits or deductions, effectively increasing the marginal rate even for income below that level. Of course, nobody believes that garbage about 'not one dime' anyway, so it won't really help to reduce below $250K, since anybody paying taxes at all (however few of us are left) is gonna get socked with an increase too."

The Moonbats now know that their heroes are corrupt to the bone, but they don't have a clue as to what to say or do about it.

"By Carol D. Leonnig
Washington Post Staff Writer
Tuesday, May 12, 2009; 5:58 PM

"The Federal Aviation Administration, after reviewing concerns about a project at a regional airport named after Rep. John P. Murtha (D-Pa.), has decided to go forward with plans to use $800,000 in stimulus funds to repave the airport's alternate runway.

"Late this afternoon, a spokesperson for the Department of Transportation confirmed that the department had completed its review and would be releasing the funds for the Johnstown, Pa., airport project.

"DOT spokesperson Jill Zuckman said the review was undertaken after a 'senior policy' official at DOT decided he wanted to reconsider the project, but she declined to identify who that was or detail the reason for the reconsideration. She said the runway's concrete hasn't been replaced in many years and is in need of repaving."

Your tax dollars at work for the fat pig who falsely accused those Marines of cold-blooded murder.

Obama is raising the top two tax rates. Only he could call that a tax cut to the rich.
Someone please explain how that is a tax cut.
I get that those under 200,000/yr get a tax cut, but the top two rates GO UP.
THAT IS A TAX HIKE.
If he at the same time decreases taxes for others that is his socialist redistribution of wealth, period!
I am certain all of you underachievers chomping at the public font will be thrilled.

Meanwhile, how much extra tax will the new rate ding you between $231k and the $250k pledge number? (250k-231k)*(3%) = about $600.
===================================
$600 is 6000 dimes.

The pledge was not one dime.

6000 dimes.....

Doh! I too got caught by the marginal rate math. The expansion of the lower marginal rate bracket appears to mean that families making less than $250,000 WILL NOT pay more in total taxes. How does that work? Well, they pay more for their earnings above $231k, but less on the $23k earned from $208k to $231k. Currently that $23k is taxed at a 33% marginal rate ($7590), but he proposes it be taxed at a 28% marginal rate ($6440), a savings of about $1000.

Meanwhile, how much extra tax will the new rate ding you between $231k and the $250k pledge number? (250k-231k)*(3%) = about $600.

At this early proposal stage, Obama is sticking to the letter of his pledge.

(Though to be honest, I'd rather see him go ahead and break it a bit - $250k isn't really middle class.)

Mongo:"So, if you are an individual who makes $190,651 or more, or a couple who makes $231,301 or more in 2009, you will see your tax rate increase from 35 to 39.6 percent?"

The pledge you cited very clearly specifies families, so the $231,301 limit would apply. Family indicates a couple or a head of household filing status. The consistency of using 'workers and their families' makes it pretty clear that the $250k figure is for that filing status.

"But let me be perfectly clear... if your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime."
And the voters will have to judge him on whether his actions are close enough to his pledge.

"you will go from the 33% tax rate to the 28% tax rate."

That should read, "About $19,000 of your income will go from the 33% to 28% bracket."

Folks seem to have a very hard time understanding what marginal rates mean, so it is important to be clear.

Let's see what he actually proposes. That's one campaign promise he needs to keep.

Same article:

"It's not change to add more than $5 trillion to the deficits we've run up in recent years."

So let's run up $9.3 trillion more, right?

Barack Obama from that same WSJ article, November 3, 2008:

"At a moment like this, we can't afford four more years of spending increases..."

That's what he said the day before the election, folks. Can you hear him now?