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Obama's Marginal Tax Rate Hikes, by Income Level
Interesting representation of the impact of Obama's tax plan from The American (based on analysis by the Brookings Institution and the Urban Institute’s Tax Policy Center).
By "tax cuts for the middle class" Obama apparently means "40 percentage point tax hikes for the middle class."
These are marginal rates, not effective rates, so they apply to the next dollar earned by a taxpayer with a given AGI. Still, as marginal rates, they can be described as the strength of the disincentive to earn more money. With that in mind, the Obama plan appears to be hell-bent on yanking the ladders to prosperity out from under middle- and working-class Americans.
(HT: Marginal Revolution)
Handcrafted by Flip on August 13, 2008 |
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Comments
A "marginal tax hike" is not at all equivalent to a "40 percentage point tax hike." People care what they are paying, not the relative rate at which the next dollar of income will be taxed. By the way, McCain is also increasing marginal rates for people earning $50K-$120K. He's decreasing them for people earning over $120K, of course. And for people earning under $25K? Ouch! Big increases. Non partisan analysis here: http://www.taxfoundation.org/publications/show/23724.htmlPosted by: Dan | Oct 14, 2008 1:59:03 PM
"People care what they are paying, not the relative rate at which the next dollar of income will be taxed." Except for people earning commission under that bracket, genius.Posted by: Abu Dhabi | Nov 27, 2008 9:59:00 PM
