Tax hike comparison
- Article by: The Associated Press
- Associated Press
- December 17, 2012 - 3:25 PM
House Speaker John Boehner is proposing to let tax rates increase on incomes above $1 million, while President Barack Obama wants to let taxes go up on incomes above $200,000 for individuals and $250,000 for married couples. Could they land somewhere in the middle?
A look at how many households would be affected by those proposals, as well as one to increase taxes on households making more than $500,000, and rough estimates of the additional revenue they would generate over the next decade:
Plan: Increase the top two tax rates on income above $200,000 for individuals and $250,000 for married couples. The 33 percent tax bracket would increase to 36 percent on income above the thresholds, and the 35 percent tax bracket would increase to 39.6 percent on taxable income above $397,000.
Households affected: 2.8 million.
Additional revenue: $442 billion.
Plan: Increase the 35 percent tax rate to 39.6 percent on income above $500,000.
Households affected: 965,000.
Additional revenue: $280 billion.
Plan: Increase the 35 percent tax rate to 39.6 percent on income above $1 million.
Households affected: 368,000.
Additional revenue: $200 billion.
Sources: Office of Management and Budget, Joint Committee on Taxation, Tax Policy Center, AP calculations.
Note: Additional components could be added to each plan, such as limiting deductions or increasing taxes on investments, which would increase revenue even more.
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