Obama is going to raise taxes on income over $250,000..not income under $250,000

dstark · 10-22-2008, 02:05 PM

Obama is going to raise income taxes and capital gains taxes only on the amount of income or capital gains taxes above $250,000. For those that make more than $250,000, the first $250,000 will not be taxed higher.

So if you make $250,000 your taxes will be unchanged under Obama's plan.

If you make more than $250,000 you will pay approximately 5% more of you income and capital gains in taxes. Again, only the amount above $250,000 will be taxed more.

So an income of $350,000 will see a $5,000 tax increase.
An income of $450,000 will see a $10,000 tax increase.
An income of $550,000 will see a tax increase of $15,000.
An income of $1.25 million will see an increase in taxes of $50,000.

Hardly onerous.

Not socialism either.

I read a lot of nonsense about how it's the end of the world if Obama wins, and the rich will get buried.

The rich might get buried...but not by Obama.

mini · 10-22-2008, 02:15 PM

Sad. That tax increase will not even get close to paying the interest on the Bush/McPOW debt. It won't even get close to paying off the loan Bush/McPOW took out to pay for the so-called tax cut (which is a misnomer). It won't even provide a downpayment on what will be needed for veteran's services for the 250,000 soldiers coming back with PTSD and traumatic brain injuries over the next 20 years.

It is way, way, WAY too little. (and I think, given the needs of the nation, Obama's so-called middle-class tax cut is an absurdity.)

sallyawp · 10-22-2008, 02:19 PM

In addition, Senator Obama is proposing to change the way we pay FICA taxes, so that while today you max out your FICA payments at $102,000 (which will continue to go up as it is indexed for inflation each year), taxpayers will again begin to pay FICA taxes at some level of income (which I do not believe has been specified yet), with the new FICA taxes to be uncapped. For employees who must pay the additional amounts of FICA taxes, their employers will also be called upon to pay 50% of those taxes, just as those employers do for income up to $102,000. In higher cost, higher wage areas, this could be a significant change.

In addition, unless and until the AMT is fixed, anyone living in a high property tax, high income tax state who makes over approximately $100,000 will find themselves paying much more than one would anticipate simply by looking at marginal tax rates.

The overall effect will likely result in tax increases of more than simply 5% more on incomes greater than $250,000.

dstark · 10-22-2008, 02:22 PM

That proposal about social security is dead. It is not supposed to go in effect for 10 years. There will be a new persident then. So that proposal is dead.

So don't worry about that.

And the AMT being a problem is the way it is set up today. It's not Obama. And next year is taken care of.

samiamy · 10-22-2008, 02:32 PM

we have been doing AMT for about 6 or 7 years personally, overall not much of an issue,unfair, yes because once again this law was put in place to catch those big business trying to evade paying taxes, not middle class families which it is now hitting.

dstark · 10-22-2008, 02:37 PM

ok, but that's not Obama.

I have no idea if it will be fixed under Obama or not. The government needs the money. The AMT is the closest thing to a flat tax we have.

missypie · 10-22-2008, 02:38 PM

I hear about these McCain rallies and see footage...Joe the Plumber and Carrie the Fry Cook and Fred the Forest Ranger and Wanda the WalMart Checker are all being told that Obama will raise their taxes....I would bet that 95% of the people there do not make in excess of $250,000.

It astounded me that while we were at war, I got a tax cut.

razorsharp · 10-22-2008, 02:40 PM

What is your source on this dstark? Are you accounting for the lapsing of the Bush tax cuts? Will the millions of people President Bush removed from the tax rolls be returned to being taxed when the Clinton tax levels are restored?

samiamy · 10-22-2008, 02:42 PM

Im not blaming him, he wasn't the one responsible for it.

What I was saying is we have been lucky, we don't mind paying it, annoyed that big business wall street execs that have taken such risk, a government that has allowed an economy to falsely inflate with not a lick of capital to back it. Not one ounce of investment in US infrastructure in who knows how many years, no energy policy besides drill baby drill mind set. I could go on, but will stop.

dstark · 10-22-2008, 02:44 PM

I looked at Obama's proposal.

I'm not looking at inheritance taxes.

Just income and capital gains taxes.

Razorsharp, you tell me what taxes will go up under Obama's plan that I didn't mention.

What taxes will go up?

samiamy · 10-22-2008, 02:44 PM

Missypie

you think thats odd, the state I live in which is in the 10 most likely to go bust in the very near future, just sent out a $660 property tax rebate check, got it last week, do I want it, perhaps, do I need it no, would I have rather they keep it, so they will honestly do something fruitful with it darn right. An election, buying the sheeples vote.

dstark · 10-22-2008, 02:46 PM

"Will the millions of people President Bush removed from the tax rolls be returned to being taxed when the Clinton tax levels are restored?"

Many of these millions pay social security taxes.

50% of the people who work in this country make less than $25,000 a year.

75% make less than $50,000.

My source is CNN and Lou Dobbs.

They pay social security taxes. Many, but not all pay income taxes.

They all pay medicare taxes.

marite · 10-22-2008, 02:58 PM

dstark:
The amounts you cite are not for income but for taxable income, right? So various families would be differently affected depending on their exemptions.

razorsharp · 10-22-2008, 03:06 PM

Here is what I am talking about:

Quote:

The chamber voted 52-47 to reject a move by Senator Graham, a Republican of South Carolina, to extend Mr. Bush's tax cuts for middle- and higher-income taxpayers, investors, and people inheriting businesses and big estates.

Quote:

Under both Democratic plans, tax rates would increase by 3% for each of the 25%, 28%, and 33% brackets. At present, the 25% bracket begins at $31,850 for individuals and $63,700 for married couples. The 35% bracket on incomes over $349,700 would jump to 39.6%.

Senate Democrats Reject Bush Tax Cut Extension - March 13, 2008 - The New York Sun

If the Bush tax cuts are left to expire, then there is a tax increase. If Obama increases taxes on top of that, then the tax increase is even greater. That's why I am asking if dstark's analysis factors in the expiration of the Bush tax cuts?

The Bush tax cuts removed about 7.8 millions people from paying ANY income taxes. What happens to them if the Bush tax cuts are not extended? Are they added back and then Obama removes them again?

The Tax Foundation - Bush Tax Cuts Erased Income Tax Burden for 7.8 Million Families

dstark · 10-22-2008, 03:08 PM

yes
adjusted taxable income (income after deductions)