August 18th, 2010
08:09 AM ET
4 years ago

Higher taxes for the rich: What they'll pay

(CNNMoney.com) - If you're a wealthy American, you've probably heard that your tax bill will be higher next year if President Obama has his way. But how much more are you really going to pay?

With Obama's tax plan in place, the cuts introduced during the Bush administration would lapse for the top two income brackets, resulting in a tax increase for the nation's richest taxpayers.

That means people making more than $195,550 in taxable income ($200,000 in adjusted gross income) and joint filers with taxable income over $237,300 ($250,000 in adjusted gross income) would be pushed up from the current 33% and 35% tax brackets into 36% and 39.6% brackets next year.

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Filed under: CNNMoney.com • issues • Taxes
soundoff (41 Responses)
  1. awaitingliberalizationbyCNN

    Obozo and the libertards are going to show us that we should not work hard and act responsibly. They want us to be like their supporters, not work, not pay taxes, watch Oprah, smoke dope and vote for them. They want to make sure there is no incentive to work and act responsibly. Where is the Palin story of the day?

    August 18, 2010 08:45 am at 8:45 am |
  2. Middle eastern immigrant

    Rest in Peace America....Obama wants to make sure that you never rise again...May God have mercy on your soul

    August 18, 2010 08:52 am at 8:52 am |
  3. EveMlle

    How about not penalizing those who work hard? I pay taxes this high only to find severe mismanagement of my funds by the govt. Moving from NJ ton avoid the high income and property tax are one way of off-setting this increase. Florida... Here we come!

    August 18, 2010 08:52 am at 8:52 am |
  4. terry,va

    Obummie is stupid enough to let this happen. I can stand it if you can Obummie. Your move will further choke off jobs. Your political career is done!!!!!

    August 18, 2010 08:58 am at 8:58 am |
  5. Definitely not a rich guy

    Rest in Peace America....Thanks for nothing Obama...
    You just wait, before you know it, anyone who does not work for the government ill be classified as "RICH"..

    August 18, 2010 08:59 am at 8:59 am |
  6. glib lib

    This is what all the fuss is about. You'd think they were going broke. Its funny how people who are not in these tax brackets will vote against their own financial interests for the promise that they could one day be one of these top earners. The problem is that no one gets there alone. You think people making millions her in the U.S. could earn that much if they came up in say, Honduras or Nigeria or Pakistan. No. They make that much because of ambition, hard work, and the United States of America. They owe this country.

    August 18, 2010 09:02 am at 9:02 am |
  7. carl from savannah

    This would not be a tax increase. I repeat not a tax increase. It is a return to where it should be. I pay taxes and if I had to pay more so what. As long as my neighbor can find work or receive health insurance for a ailing child so be it. "Obamacare" is not a socialist idea but rather a humanistic idea. Republicans are always willingly for big banks and big businesses. It amazes me to see that so many sheep are being led away believing their agenda. Americans be aware the republicans have always ran the United States in the ground. President Lincoln was the only great republican and he had lived in our time I am quit sure he would be a democrat. Republicans today are not the party of the past, my mistake I take that back you are the Dixiecrats.

    August 18, 2010 09:06 am at 9:06 am |
  8. Eric

    "Higher taxes for the rich: What they'll pay"

    The real question is "Taxes for the rich, how will it end up affecting YOU?"

    The wealthy create the jobs you and I work in this country. Don't believe me? Ask yourself if you can recall the name of the poor man who offered you a job, or who hired your for a job, or the poor man who ever once signed your paycheck.

    The wealthy create jobs via their purchases and their investments. And when you "sock it to the rich," it trickles down to you in the form of less business, less demand, higher unemployment, less opportunity and possibly even the loss of your own job or business.

    So go ahead and trash talk those eeeeeevil rich people, but just make sure you don't do it with your mouth full of food that their opportunities provided.

    August 18, 2010 09:12 am at 9:12 am |
  9. Come on, think about it right wing, seriously

    Really? Do you REALLY think a 2% tax increase on people making more than $250,000 per year is going to take liquid cash out of the economy? Do think that maybe, just maybe, those folks will slightly adjust their expenses and life will go on? Is it possible that perhaps having more federal income to offset record deficits will help stabilize our currency, thereby encouraging foreign investment and helping the trade deficit?

    August 18, 2010 09:12 am at 9:12 am |
  10. Facts are not fair to the GOP

    Imagine Beck, Hannity, Limbaugh, O'Reilly, having to pay the same rate as their chaeuffers, butlers and cooks have to pay.

    August 18, 2010 09:22 am at 9:22 am |
  11. Orlando Patriot

    This is a DRASTIC mistake that will become clear in a matter of only 6 months or a year. Increasing tax rates when the economy is going too fast is certainly a debatable topic but INCREASING taxes when the economy has not recovered from the worst recession since the 70's is a guarantee for DISASTER!! Taxes alter the business focus and when the opportunity cost of money invested increases then a businessman will do what is necessary to protect their investment. End result is get ready for more layoffs and companies discussing relocating outside the U.S.

    I know personally one company that has made the decision to create a new corporation in another country and run the majority of the business through the new corporation. This company has profits it the $4 to $5 million range and will save him nearly $800,000 in taxes AND will layoff about 5 individuals in the U.S. which will be hiring 5 individuals in the new country. So instead of the U.S. getting MORE tax revenues (from this particular business) the U.S. is going to get LESS. Any smart business will do the same thing so get ready for a number of businesses to do the same. BTW, the U.S. has one of the HIGHEST corporate tax rates in THE WORLD!! tell me again how increasing the tax rates now are going to benefit the U.S.?

    August 18, 2010 09:32 am at 9:32 am |
  12. hangemhi

    All this posturing over 6k dollars of a200k income. Just a few deductions away from zero.

    August 18, 2010 09:36 am at 9:36 am |
  13. Sue

    Under the Reagan years (the famous Reagon Era as the Republicans like to relish in) the rich was paying 39% in taxes....their not talking about that are they? Now because Obama is going to raise the taxes on the rich it's a crime......he doesn't know what he is doing.....well maybe the taxes could be left alone if the Republicans would get off the butts and stop putting up road blocks every time this President try's to so something to help our economy......the economy hasn't moved ahead because the Republicans are blocking everything and trying to make it look like Obama is Failing.......well I don't see it that way, I see a FAILED Republican party......a party running around in circles chasing their tails......they haven't come up with a solution yet so that tells me they have NO Idea how to get the jobs back or our economy flowing again......

    August 18, 2010 09:37 am at 9:37 am |
  14. Randolph Carter, I'm no expert but....

    Wow, sucks being them. How are they supposed to create all of those jobs we always hear about with oppressive taxes like that? Have a nice day!

    August 18, 2010 09:39 am at 9:39 am |
  15. Randall in Torrance, CA (Disabled Navy Veteran, Retired) - It is time to put the heels of our Liberal Democratic Boots on the necks of the out-of-control Right-Wing Corporations

    What about the huge corporations and Wall Street tycoons? Make sure they dig deep into their huge bank acounts filled with the profits made off the backs of the poor, hard working middle-class peasants. If they paid their share, America would be in the green right now instead of floating down the toilet pipes.

    God hates greedy arrogant Republicans who spit on the poor and rob them blind.

    Viva la Revolucion!

    August 18, 2010 09:42 am at 9:42 am |
  16. Go USA!

    Even with the increase, they will pay less than they did under Reagan, Nixon, or Eisenhower. Tax rates for the rich, under Reagan, were over 50%! Tax rates for the rich under Nixon were 75%, and tax rates for the rich under Eisenhower were 91%! So what makes Obama's tax increase so extreme? The rich will pay the same as they did under Clinton...39%.

    If you look at our deficit history, Reagan cut taxes without paying for the tax cut and our deficit exploded. That is when the real problem began.

    When will the right learn, you cannot tax cut your way to a balanced budget! And you cannot cut government spending in a recession without tipping the economy into a depression.

    Wake up America! The truth will set you free from the GOP!

    August 18, 2010 09:43 am at 9:43 am |
  17. annie s

    The argument from the right that letting these tax cuts for the wealthy expire will damage the economy is ridiculous. After all, they were in place when the economy tanked, weren't they?

    August 18, 2010 09:44 am at 9:44 am |
  18. Mark from Louisiana

    I know a small business owner who will lay off two employees to reduce the size of his business so he can stay in a lower tax bracket. Expect to see that all over the country and unemployment numbers rise.

    August 18, 2010 09:51 am at 9:51 am |
  19. Marcus

    And cue to the irate/indulgent/mocking posts of those guys who does not believe in CBO reports when it doesn't suits their opinions, in THIS case the conservatives, and who still claims that:
    – The tax cuts are necessary for the recovery of the economy;
    – The tax cuts had NOTHING to do with the current status of the economy;
    – The tax cuts are the best and most obvious (and only lefties in their everlasting denial of reality doesn't agree with that) tool needed for a healthy and whealty economy;
    – The end of the tax cuts will represent the greatest tax increase in the country's history;
    ... and many other false and debunked claims!

    August 18, 2010 09:52 am at 9:52 am |
  20. Fair is Fair

    It just doesn't get any more misleading than this.

    Hey CNN... Perhaps explaining the difference between earned income and ordinary income would be in order instead of using hypothetical, one-size-fits-all examples. Why don't you use a real life example? Let's say John Kerry?

    He and his ketchup heiress wife have a net worth approaching $1 billion. But almost all of their assets are in municipal bonds... to all of you out there that don't know, those would be tax-free. The only taxes the Kerrys pay are on his senator's income – less than $250,000. (If you want to throw some salt on the wound... senators pay no FICA).

    So the billionaire Kerrys, using your formulas, are getting a tax cut.

    Only in America... "o'er the land of the elite, and the home... of the... middle-class slave"

    August 18, 2010 09:58 am at 9:58 am |
  21. Clwyd

    Remember the rich got by paying less when the bushwhacker was president and it didn't carry over to the middle and lower classes then. It is about time they got back to paying the higher amount. I'm sick of seeing homeless and a Mercedes then drives by!

    August 18, 2010 10:01 am at 10:01 am |
  22. New Age Independant

    It's no wonder that our jobs are being moved offshore to India...

    August 18, 2010 10:05 am at 10:05 am |
  23. johnnyhouse

    Lets hurry up and break all these old rich people and then we can go get us a real job from all the people who will benefit from such action.

    August 18, 2010 10:07 am at 10:07 am |
  24. Sgt. Joe

    Cry me a river.....

    August 18, 2010 10:07 am at 10:07 am |
  25. Independent

    Increasing taxes on small business owners is a sure jobs killer, and that is what Obama is doing. His socialistic approach to government is killing free enterprise and capitalism in the United States. And make no mistake, it is Capitalism that creates jobs. When Obama begins to tax the so-called rich (AKA small business owners who account for 90% of job growth in the US), he deals them a big dis-incentive. The reaction by small business owners is to recoup the tax hit - they either cut jobs or they do not create as many new jobs. This is Economics 101 and Obama still does not get it. He believes in the old tax and spend Democratic principle – that and deficit spending to buy the votes of unions, latinos, and those that pay zero taxes

    August 18, 2010 10:10 am at 10:10 am |
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