August 12th, 2010
08:52 AM ET
4 years ago

A surprise tax cut for the (almost) rich

New York (CNNMoney.com) – Worried about your taxes going up next year? They might for some high earners. But some not-quite-rich taxpayers could end up with a surprise tax cut.

If the Bush tax cuts expire for the nation's top earners, people making a pinch less than the wealthiest Americans, who don't quite qualify for the new top two tax brackets, could find themselves in an even lower bracket next year.

"We should end up with a sweet spot in the middle of the higher income brackets," said Robert Kerr, senior director of government relations at the National Association of Enrolled Agents. "This is an unintended benefit of the new plan that many people don't realize."

Full Story


Filed under: Bush administration • issues • Obama administration • Taxes
soundoff (19 Responses)
  1. Donnatella

    Good, the ultra rich are so greedy, all they do is hoard their money and look for ways not to pay taxes on it.

    August 12, 2010 08:57 am at 8:57 am |
  2. Tax Break My,,,,,

    I'M sure ol tax and give away obama, pelosi and reid will find away to close that loop hole so they can support the illegals and welfare slugs they so love, as well as the unions they sleep with.

    August 12, 2010 09:00 am at 9:00 am |
  3. diridi

    If ever you call, and the other end of Technical Support, or Customer Service, your duty is to immediately cancel, whether it is a visa, or dish network, or sudden link, or Sprint....just cancel...till pres. Obama puts high, very high tarriffs, to these companies...you are helping not only save American Economy, but also, American Jobs....And, please ask your senator, and representative to pass Senate and Congress "Term Limits". I did you do....ok, God bless you and our great nation, the USA!!!!

    August 12, 2010 09:01 am at 9:01 am |
  4. Rick McDaniel

    That's pure BS. The loss of tax deductions automatically raises taxes on the middle class. Obama's admin are such liars.

    August 12, 2010 09:03 am at 9:03 am |
  5. diridi

    The other end should be foreign nation...just cancel....the service...

    August 12, 2010 09:03 am at 9:03 am |
  6. almost rich

    That's me! Yippee!!!!!!!

    Who knew a socialist dictator would lower my taxes and reduce tariffs on supplies manufacturing companies need to make great products here in the great US of A ?!?! Somehow it doesn't look like President Obama hates business or wants punish people for working hard and getting ahead. BUT some of you will still complain...just 'cause your guy lost. Sad.

    August 12, 2010 09:05 am at 9:05 am |
  7. Ancient Texan

    This could result in a little optimism if it's true. But uncertainty about the future is still the lead weight dragging the economy down and slowing hiring of the unemployed.

    August 12, 2010 09:17 am at 9:17 am |
  8. NVa Native

    There is a lot "people don't realize" and a whole lot of people who choose not to "realize". Like when they only watch one media outlet and claim all others are wrong they are making the choice to be manipulated and used.
    They are making the choice to be an "American Idiot".

    August 12, 2010 09:27 am at 9:27 am |
  9. jpmichigan

    With the economy and the stocks and bonds at a lower place, the individual making $250,000 a yrs may find themselves in a lower place and those who will pay the higher taxes may just be those working for the government or part of the government for they are the only ones working and profiting.. Watch out men and women on the Hill that is you!

    August 12, 2010 09:32 am at 9:32 am |
  10. Dennis

    I find it almost laughable that anybody would get their panties in a twist over all the ULTRA RICH whining about taxes. They are following the lead of the ULTRA RICH and getting their panties in a twist over things they know nothing about other than the lies their ULTRA RICH idiots are telling them. Little do they know that the taxes that the ULTRA RICH are trying to save are from the ill-gotten gains they've received from screwing the middle class Americans for decades. Now they want YOU to fight for THEM. People, educate yourselves before you spew the party line.

    August 12, 2010 09:34 am at 9:34 am |
  11. barry

    With the continual decline of our countries finances, I don't think many people will see a tax cut. I think it's evident most of the country will see a tax hike probably a substantial one. I know President Obama took over a bad situation but it isn't getting better. I would just like to see him pick a date on the calendar when he feels at that point he owns it. Maybe then he will be more compelled to stop playing politics, campaigning, vacationing,golfing, and playing basketball and go to work for the American people to do what we elected him to do. People are hurting. It's time to step up to the plate. The blame game isn't helping and this is about to get completely out of control.

    Barry

    August 12, 2010 09:41 am at 9:41 am |
  12. Oy Vey Az

    Unintentional? Oh yeah sure ... No one saw this coming? Bull.

    So the rich get richer, and the poor gets kids?

    Somethings wrong.

    August 12, 2010 09:44 am at 9:44 am |
  13. Keith in Austin

    Don't hold your breath!

    August 12, 2010 10:06 am at 10:06 am |
  14. sammieb51

    Don't tell the GOP or faux for news!

    August 12, 2010 10:27 am at 10:27 am |
  15. Hugo

    This article must be addressing the massive group of City, Federal and State employees, the rest of private working class America seems to be sitting it out on the sidelines UNEMPLOYED! Who the hell is worried about taxation when you don't have a reportable income and how do you fund tax funded paychecks when there is no tax base left to tax other than a tax base funded tax? Like a dog chasing its tail...

    Welcome to Zimbabwe....

    What a bad joke this has been, 2010 & 2012 Change you can believe in!

    August 12, 2010 10:30 am at 10:30 am |
  16. Ben in Texas

    Here's a novel idea: Write the tax code so that everybody pays their fair share. Take out all the loopholes for the rich. Quit using the tax laws and tax policy to curry favor so that corporations and the rich feel grateful to sycophantic politicians and fill their re-election coffers with large donations. In fact, prohibit the rich and corporations from buying politicians with donations.

    The government runs on taxes, and we all benefit from tax-funded projects like roads, defense, fire and police protection, and maybe one day, health care. But rich people are tax shirkers. The evidence of that is the growing gap between rich and poor, and the shrinkage of the middle class. Let's make up the shortfall by coming down hard on rich people in regard to tax collection. Tax the rich back to the Stone Age!

    August 12, 2010 10:38 am at 10:38 am |
  17. G

    I don't mind a little bit higher taxes if they were associated with dramatic (eg. 15% across the board) spending cuts. But unfortunately, if we allow taxes to go up the politicians will spend it all and borrow even more. We can't solve our budget crisis with tax increases or more borrowing. We can't solve our bad economy crisis with tax increase or more borrowing. Fiscal responsibility please.

    August 12, 2010 10:43 am at 10:43 am |
  18. nick

    Another legacy from the years of mis-rule under the GOP'ers: money to the wealthy and nothing for the people. How long will it take you GOP'er supporters who ARE NOT RICH to realize that you are being used! The Republicans are the party of the rich, by the rich and for the rich.

    August 12, 2010 10:46 am at 10:46 am |
  19. Mason

    Your dreaming if you think you taxes are going down and you make over $100K. There will be other taxes in there and the marriage PENALTY is coming back. On top of that the estate tax is coming back at a whopping 55% on over $1m. We were at $3.5M exclusion for estates in 2009 but Obama wants your money for social expansion & wealth REDISTRIBUTION. Expect elderly to start gifting the max $13k away to every person in their family and estate attorneys business will be booming. They may be the only ones hiring in the Obama economy.

    August 12, 2010 10:50 am at 10:50 am |