Boo Radley
DP Veteran
- Joined
- Dec 20, 2009
- Messages
- 37,066
- Reaction score
- 7,028
- Gender
- Male
- Political Leaning
- Liberal
I can't find anything supporting your claim:
Under current law, the 2001 and 2003 tax cuts nearly all expire in 2011, returning the individual income tax to its pre-2001 level (except for a few permanent changes). In defining the baseline for his budget, the president assumes that, rather than ending in 2011, the tax cuts will become permanent. From that baseline, he would increase taxes in 2011 for high-income taxpayers—couples with income over $250,000 and single people with income above $200,000.
Specifically, he would raise the top two tax rates back to their pre-2001 levels, change the income threshold for the next-to-highest rate, reinstate the personal exemption phaseout and the limitation on itemized deductions, and impose a 20 percent tax rate on long-term capital gains and qualified dividends.
Those tax increases would essentially leave income tax rates for high-income taxpayers at the levels scheduled after 2010 under current law although the incomes defining the next to highest tax rate would change. People with qualified dividend income would pay less tax because the proposed 20 percent rate would be lower than their regular tax rate, the rate that would apply to dividend income if Congress let the 2001-2003 tax cuts expire. Others would pay more tax because the 20 percent rate on capital gains exceeds the 18 percent rate that would apply to gains on assets held more than five years and because the phaseout of personal exemptions would begin at a lower income than under current law.
TPC Tax Topics | 2010 Budget - Tax Increases on High-Income Taxpayers
Under current law, the 2001 and 2003 tax cuts nearly all expire in 2011, returning the individual income tax to its pre-2001 level (except for a few permanent changes). In defining the baseline for his budget, the president assumes that, rather than ending in 2011, the tax cuts will become permanent. From that baseline, he would increase taxes in 2011 for high-income taxpayers—couples with income over $250,000 and single people with income above $200,000.
Specifically, he would raise the top two tax rates back to their pre-2001 levels, change the income threshold for the next-to-highest rate, reinstate the personal exemption phaseout and the limitation on itemized deductions, and impose a 20 percent tax rate on long-term capital gains and qualified dividends.
Those tax increases would essentially leave income tax rates for high-income taxpayers at the levels scheduled after 2010 under current law although the incomes defining the next to highest tax rate would change. People with qualified dividend income would pay less tax because the proposed 20 percent rate would be lower than their regular tax rate, the rate that would apply to dividend income if Congress let the 2001-2003 tax cuts expire. Others would pay more tax because the 20 percent rate on capital gains exceeds the 18 percent rate that would apply to gains on assets held more than five years and because the phaseout of personal exemptions would begin at a lower income than under current law.
TPC Tax Topics | 2010 Budget - Tax Increases on High-Income Taxpayers