How much will marginal tax rates increase? The Wall Street Journal gave the data today. For single taxpayers (the WSJ says "workers" but I'm not sure you need to work to qualify) , the rebate phases out after $75,000 of income by $20 for every additional $1,000 of income. The tax credit for singles is $400. So for singles in the income range from $75K to $95K, marginal tax rates in income will be two percentage points higher. For married taxpayers, the tax credit is $800; it phases out after $150,000 of income by the same $20 per $1,000 of income. So for married taxpayers with income between $150,000 and $190,000, marginal tax rates will be two percentage points higher. Of course, singles making between $75K and $95K and couples making between $150K and $190K are among the most productive people in the country and, therefore, in the world. Full article here.And you thought that just because BHO said it eloquently with a confident, emotion laden voice that we were going to get a tax cut? And we the people were heard mumbling softly in the background.
When Congress raises marginal tax rates on the most productive citizens, guess what those productive people have a new incentive to do. That's right; you got it.