(IBD) President Obama’s Proposed Tax Rates Would Exceed Clinton-Era Rates

Posted by Kendall Harmon

....President Obama's call for a return to Clinton-era tax rates is misleading: If the Bush upper-income tax cuts go away, tax rates will exceed those in place at the end of the 1990s.

The top effective federal marginal tax rate on work income would rise to roughly 44.6% from 37.9% in 2012.

That's higher than under President Clinton because of a 0.9-percentage-point Medicare payroll tax hike for upper-income households, which passed with Obama-Care and takes effect in January.

Tax rates on long-term capital gains also will be higher than when Clinton left office if Bush tax cuts expire as ObamaCare's new 3.8% Medicare tax on investment gains takes effect. Up to now, only wage and salary income has been subject to Medicare taxes.

Read it all.

Filed under: * Economics, PoliticsEconomyTaxesThe U.S. GovernmentBudgetMedicareSocial SecurityThe National DeficitPolitics in GeneralHouse of RepresentativesOffice of the PresidentPresident Barack ObamaSenate* TheologyEthics / Moral Theology

Posted December 3, 2012 at 10:01 am [Printer Friendly] [Print w/ comments]

1. drummie wrote:

Removed—off topic of the post, which is about the claims made about the historical level of some tax rates in the current Fiscal Cliff debate-ed..

December 3, 1:44 pm | [comment link]
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