Below is a reprint of a piece I published here on September 3, 2010. Given the results of the last elections, and the Republicans’ announcements about their new tax priorities, I thought it deserved to be brought back to the front of the posting list.
Pay special attention to my observations that the tax increase will NOT affect families with incomes over $250,000. It will affect families with TAXABLE ADJUSTED GROSS incomes over $250,000. If you make enough money to get taxed on that amount, you must also know how much pre-tax income that actually represents; I’d guess a personal pre-tax gross of around $350,000 to $500,000 per year, easy.
That’s really a whole different ballgame from the way this story is usually framed by the Republicans, and perhaps misapprehendied by the Democrats.
What particularly brings this back to mind for me is that on Keith Olbermann’s “Countdown” (Monday, 11/9/2010, last day without Keith :), Pulitzer Prize-winning tax reporter David K. Johnston, professor at Syracuse University of Law, was being interviewed on this very topic when this particularly came up. It was gratifying to hear a recognized expert finally bring up this salient point on a major media outlet. Aside from my September 3rd mention, he is the only other person I’ve heard or read who has publicly brought up this critical detail. I was beginning to think I might be the one mistaken
Nope. Not this time. I hope you’ll give me some points for prescience on this issue.
Now … My original piece is below. You can see the interview video on MSNBC Countdown here.
I was just listening to an interview of Carly Fiorina in California. She was moaning and groaning about this tax increase that will occur when the Bush tax cuts expire.
Let’s put some numbers to the crocodile tears:
When the tax cuts expire, if you are a single person making an adjusted gross income up to $200,000.00 per year, your tax increase will be exactly … $0!
If you are a couple making an adjusted gross income up to $250,000.00 per year, your tax increase will be exactly … $0! So up to a quarter of a million dollars per year adjusted gross income, this tax change will not affect you at all.
If you are couple making an adjusted gross income of $300,000.00 per year, the additional taxes on that extra $50,000.00 will be exactly … $1,500.00!
If you make a million dollars or more per year adjusted gross income … Well, quitcher bitchin’.
What do you think?