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Saturday, December 24, 2011

Payroll Tax Eliminated for Those Earning $110K

The TaxProf points out a little known provision as part of Congress' brilliant 2-month payroll tax cut extension. In it, there is this little "recapture tax" nugget, which says that anyone making over $110,100 will have to pay an extra 2% income tax on that amount over $110,100 during the period for which they get the "benefit" of the payroll tax extension.

So...let's forget about that whole $250K amount (Obama's definition of millionaires and billionaires). The new amount where Americans get screwed is just $110K.

Thanks Boehner - hell of a job!!