Obama's Second Term Tax Plans!

[snopes]

Comment: dick morris, former Clinton advisor, is circulating an internet
video which reports that individuals earning more than $250,000 will pay
$40,000 more in additional taxes (of several types).

[GenYus234]

Claim 1: MFJ taxpayers who make $250K a year. Their tax rate will go from 35% to 40% which results in an increase of $12K in taxes - FALSE

If you and your spouse make $250K a year, you only pay 33%, not 35%. At that is only on the income from $217K and up.

If you and your spouse make $500K a year, you pay 35% on the $112K above $388K. Raising that from 35% to 40% increases the tax bill by $5.5K.

The only way this claim works is if you calculate the 35% or 40% tax on the entire income of $250K. Which is not how taxes are calculated.


Claim 2: No cap on SS taxes means you'll pay another $8K in taxes - misleading and FALSE for some.

These numbers only work if you include Medicare tax in addition to Social Security tax. He is stating it as just SS tax.

This is only true if one person in the married couple earns all of the income. If both partners earn income, then the increase will be less.

For example, two people, one who earns $80K and one who earns $170K will only see an increase of $3.6K

[Errata]

Originally Posted by YouTube Comment

P.S. My wife and I make far less than 100k now but would like to be able to do so in the future without it being taken away. "No taxation without representation"

Typical Joe the Plumber syndrome. If you actually did make enough to be affected by this you might have a more realistic perspective on what it means.

[fitz1980]

"Well in Dick Morris' defense he is a lying sack of NFBSK"
-Jon Stewart

[Drakkon]

It really isn't taxation without representation, as he has representatives in both the House and the Senate.

[Mickey Blue]

Just another example of stupid people who don't understand tax law but voting like they do.

Also I don't think it counts as representation if a liberal gets elected, at least that's my understanding based on listening to the Tea Party.

[BringTheNoise]

Originally Posted by Mickey Blue

Also I don't think it counts as representation if a liberal gets elected, at least that's my understanding based on listening to the Tea Party.

Yeah, it's simple logic:

1. No TRUE AMERICAN would vote for a LIEberal
2. Therefore, if a DEMONcrat wins, he/she must have cheated and is thus illegitimate
3. TADA! NO REPRESENTATION!

[Mateus]

A somewhat related quote (not concerned with taxation, but instead the thought processes of Americans): "Socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires." - F. Scott Fitzgerald

But if they believe that the mere re-election of Obama somehow all but guarantees this new tax plan, despite the reality that a striking majority of the Senate can't pass a "paid-for" bipartisan jobs bill for veterans (58-40, no points for guessing which party the 40 were), then perhaps they will all be millionaires in their little pretend America.