The $250,000 Question: Poll Shows Obama’s Tax Plan Is Widely Misunderstood
http://www.commondreams.org/view/2012/11/25-5
For the last four years, President Obama has been pushing his plan to raise tax rates on peoples income over $250,000, but a new poll indicates that most people still dont understand one of the plans most basic concepts.
OK, its a poll conducted by my journalism grad students at NYU, and its not highly scientific. But I can say with a reasonable degree of certainty that its more accurate than the Gallup and Rasmussen polls were about the election.
Heres the Obama plan in brief. The Bush tax cuts would be extended for households with an annual income under $250,000 (or $200,000 for individuals), but the tax cuts would expire on any income above $250,000. That means, for example, if you make $300,000, your tax rate would rise a few percentage points, to the Clinton-era rates, but only on the portion above $250,000; in this case, only on $50,000. Bottom line: no onenot a billionaire, not someone making $251,000would have to pay more taxes on that first $250,000.
Theres a widespread misconception, however, and its causing a lot of unnecessary fear. Its the faulty belief that if your income is above $250,000, youd have to pay the higher rates on all your income, as if you were suddenly being moved entirely into a higher tax bracket. That is wrong.