Site for Free Markets and Free People

Thursday, February 26, 2009

Here Come the 60% Marginal Tax Rates...

Move over, Jimmy Carter - the coming tax rates are going to blow you out of the water, with marginal rates at or above 60% on families making just $208K. (According to Obama, that's "roughly in line" with the no-tax-increases on families earning less than $250K pledge.) As the WSJ details, the highest tax rate goes from 35% to 39.6%. Then the once-sacred mortgage interest deduction and charitable donations will be reduced by 7%. Add in 7.6% for FICA/Medicare, 6% for state (obviously Californians and New Yorkers would be still higher) and we're already at a roughly 60% marginal rate. And that's ignoring your employer's 7.6% FICA/Medicare match.

The WSJ also has these two tidbits:
1) Obama has admitted that the $634 billion used as a "down payment" for government-run healthcare will be well short of the roughly $1 trillion needed.
2) Obama will propose a new tax for companies that attempt to move jobs overseas.

But hey, it's not like we're in a recession or anything.

This WSJ editorial points out that even a tax rate of 100% on every family making over $200K would not be enough to cover all the new spending. And that's before the new "carbon tax" hike that is coming to "save the planet" from global warming.