http://interactive.taxfoundation.org/taxcalc/#calculator Just information as our dear leaders enter into these 'negotiations'.
Nothing changes for me except for a reduction in Payroll Tax Liability, under Obama's plan. But, I'm a third-class citizen, so Republicans will rail on me for that.
I am pretty solidly 'middle class' by any definition I can think of, mid/upper 5 figure income, married, 2 kids and my tax liability would go up about $2k a year if all the cuts expired. Which is why I think it would not be a big deal to expire the tax cuts on everyone making over the median income. Truthfully, one could probably make the cutoff eveb lower and not have a drastic effect.
I've tried several different incomes and dependent scenarios. The Republican version appears to be more favorable to the rich, whereas Obama's appears to be more favorable to those making less than $250,000. Surprise surprise lol
IMO, the $250,000 figure is still catering to the Reps. If you make that much, what the hell do you have to whine about? For a single person with no dependents, $50,000 is more than enough to live comfortably and save massively for retirement...even in some of the more expensive areas of the country. For someone like you, married with two dependents, $100,000 is reasonable for a high-quality life, IMO...and I'd put the line there.
I really don't see the massive difference between a 35% tax rate and a 39% tax rate. People like Romney would still pay less than 15% because his income is from capital gains. Why do the very wealthy have their own "special" tax rates? Put capital gains on the table for crying out loud.
I don't see any drastic changes for anyone there really. Especially not anyone in the upper half of income range. As far as capital gains...it shouldn't be a surprise that I would count it as income and tax it as income. Simpler is better...taxes are for revenue. The tax system is best when it is not used as a benefit program for any group.
The tax system is used for all kinds of purposes. For instance, we could tax families making less than $20,000 a year and then turn around and send it back to them but that doesn't make any sense either financially or from an efficiency standpoint. The states could charge state institutions sales tax but what is the point of taxing yourself? We could tax Social Security benefits the elderly receive but we would just end up supporting them in other ways through massive new government programs that wouldn't be nearly as efficient as just not taxing them. I sort of like the idea of a VAT but one type of tax is really about the same as another. I think we as Americans are used to a very good quality of life in this country but that comes at a cost. We have had good roads, good clean water, massive infrastructure projects, sent people to the moon, and been the leader in technological innovations for decades. As the tax revenues in this country have shrank through lower and lower tax rates so has the quality of life in this country and the outlook for future generations. 30 years ago the slide began with Reaganomics and has continued to this day. Time to turn this around.
I think using the tax system to try and help those in need is a terrible way to do it. Take the Child Tax Credit. I get a couple grand off my taxes every year just for having been able to reproduce. At my income level that is not something that is really not needed at all unless having iPhones is something the government cares about children having. It certainly does not affect whether my kids have food, shelter clothing or education. For someone making 20K a year, it probably could mean that to their kids. But, the $20k family is not getting as much assistance as they could be because there is no need based component to a tax credit like that. You just throw the money out there. The earned income credit is another example. I used to make bank on that little program for years when my standard of living was actually really good.
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That's the problem I have with this $250,000 limit. It's that high, in part, due to The Wrong insisting that "trickle-down" works and any whiff of Socialism is evil incarnate.
