Obama says if you make $250,000 $200,000 $150,000 per year or less, he will not raise your taxes. By technicality, he will not raise your taxes, but your taxes will go up.
Obama says he will not renew Bush's tax cuts for the rich. He will let Bush's tax cuts expire in 2010. So what does that actually mean? Letting Bush's tax cuts expire would roll the tax schedules back to the Clinton years. Let's do a few samples:
Married, filing jointly, your taxable income (adjusted income less exemptions and deductions) is $500,000. Your taxes for 2007 were $147,206 with a marginal tax rate of 35%. Rolled back to 1999 taxes, you pay $171,161 with a marginal tax rate of 39.6% - a tax increase of $23,955.
Yea, the rich get taxed more!
Well, say your taxable income is $35,000, your taxes for 2007 were $4,467 with a marginal tax rate of 15%. Roll that back to 1999 and you get a tax break, right? Not really. Your taxes are now $5,250 with a marginal tax rate of 15% - a tax increase of $782.50.
I though Obama was not raising taxes on people who make less than $150,000 per year? What is up with this?
Let's say you are married filing jointly and have $60,000 taxable income. Your taxes for 2007 were $8,217.50 (marginal tax rate of 15%). Rolled back to 1999 and your taxes are now $11,203.50. O_O A martinal tax rate of 28%! wtf? This is a tax increase of $2,986!
Well, $60,000 is a bit much for the average single head of household, right? So let's do the same calculation for head of household (single parent with kids) with $35,000 taxable income. 2007 taxes were $4,690, marginal tax rate 15%. Rolled back to 1999, taxes are now $5,308, marginal tax rate of 28%!! What?!?!? No way.
You can check my figures if you want. The tax rate schedules going back to 1991 are on unclefed dot com under tax forms/taxtables.
Obama said he wouldn't raise taxes on people making less than $250,000 $200,000 $150,000 per year.
I guess Obama lied.
Or maybe Obama didn't know the tax rates will go up for everyone when he refuses to renew the Bush tax cuts.