Re: letting the Bush tax cuts expire, how close am I to correct?

[predfan]

Those affected in the top tax bracket would be paying an additional $3000 in taxes on the THIRD hundred thousand dollars of taxable income.......no increase up to that point, in fact, wouldn't they share in cuts as their income passed through those other brackets?

They may not want to pay that extra three grand on that THIRD hundred thousand dollars of income, but it shouldn't keep them from buying shoes for the kids at Dollar General.

I'm no expert, but is that pretty close to right?

[Sebass1271]

1. yes, pretty close. The tax cuts will expire and will go back to

how they were under Clinton.

[Pirate Smile]

2. The oppressive Clinton years when the rich and corporations were crushed.

:sarcasm:

[hfojvt]

3. it depends on what expires

in 2001 tax rates for singles were
15% on first $27,050
27.5% up to $65,550
30.5% up to $136,750
35.5% up to $297,350
39.1% for the rest

for married
15% on first $45,200
27.5% up to $109,250
30.5% up to $166,500
35.5% up to $297,350
39.1% for the rest


in 2008 tax rates for singles were
10% on first $8.025
15% up to $32,550
25% up to $78,850
28% up to $164,550
33% up to $357,700
35% for the rest

for married
10% on first $16,050
15% up to $65,100
25% up to $131,450
28% up to $200,300
33% up to $357,700
35% for the rest


So I get $2500 per $100,000 until after $357,700 when it is $4100 per $100,000. However, one of the other parts of the 2003 tax cuts was that dividends and capital gains are taxed at a 15% rate for high income people and at 5% for lower income people. To me, UNearned income should not be taxed at a lower rate than wages. Also, the difference between a 15% tax rate and a 39.1% tax rate for a member of the Walton family is $24,100 per $100,000. That's the part that really needs to expire now.

[endarkenment]

4. And the estate tax too.

Capital gains and estate taxes are the big ones. The income rates are relatively minor.