Saturday, March 14, 2009

The truth about Obama's income tax plans

There's been much ballyhoo about President Obama's plan to roll back the Bush tax cuts and restore the tax rate for top earners to 39.6%, up from 35%.

Assorted Republican and Libertarian types have hurled themselves into a full-blown tizzy, swearing that they'll work less and take on fewer clients so they can keep their annual income under the $250,000 cutoff, thereby avoiding the increased tax rate. Mind you, this is ludicrous—if you make $300,000, even though your tax bill is bigger than that of someone making $250,000, you still end up with more money in the bank.

Furthermore, these folks are running around like Chicken Little, freaking out about Obama's "socialism" and the huge tax increase. Oh, really? During Reagan's first term, the top tax rate was 50%. And during Nixon's presidency, it was 70%. During the Eisenhower years, 91%. Even with Obama's repeal of Bush's tax cuts, the rich people still have it made in the shade. Here's a graph from that lays it out. Feel free to share pass it along to your relatives and friends who may be railing against the supposed tax apocalypse that will destroy them.

1 comment:

jen @ negative lane said...

Thank you for a concise, sensible argument that I can use.