Saturday, February 21, 2009

Obama's Budget--A Sliver of Progressive Taxation

It looks like taxation is going to be a little more progressive under President Obama.
While the budget would keep the breaks that benefit middle-income families, it would eliminate them for wealthy taxpayers, defined as families earning more than $250,000 a year. Those tax breaks would be permitted to expire on schedule in 2011. That means the top tax rate would rise from 35 percent to 39.6 percent, the tax on capital gains would jump to 20 percent from 15 percent for wealthy filers and the tax on estates worth more than $3.5 million would be maintained at the current rate of 45 percent.

Fortunately, there aren't any wealthy people left to pay these top tax rates--at least according to Rep. Michele Bachmann (R-MN).

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