Here's a prediction - $249,999
If the unthinkable happens and Sen. Obama is (gulp) President, I think you will see a lot of small businesses and wealthy incomes go to $249,999.
Who really want 55% of their personal income taxed as it can under the Obama tax plan. Plus when you kick the bucket possibly giving 65% (estate tax) of what you have back to the government. Sorry Joe the plumber, stick to contracting.
Sen. Obama also wants to increase capital gains taxes. Hmmmm hello people. The market is down over 30% in the past year. There's not going to be any capital gains, in fact, the losses will carry over each year until used. So no revenue there either.
Most of the people who are making over $250,000 probably did it because they were smart. So my guess is they will certainly find every means (legally of course) to not increase their tax liability.
Saying we will increase taxes on the top 95% is a nice talking point to gain votes, I'm not real sure though how much more revenue it would actually bring in to cover Obama's spending increase
On a good note at least Sen Biden did say 5% of the people would be Patriotic!
Confused? Here's the Obama Tax plan simplified
Disclaimer - I'm not a tax man or offering and financial advice!
-Jag
Read more...
