We all continue to hear about how Canadidate Barack Hussein Obama is going to cut taxes on the middle class. Thanks to the Brookings Institute and Urban Institute, we now have a clearer picture of how his tax plans will impact a two earner couple with one child in college and another age 12 or younger:
- Their marginal tax rates are between 34 percent and 39 percent in the $31,000 to $45,000 income range — a 13 percentage point or more increase from current rates.
- The increase happens because Obama phases out the child and dependent-care credit for one-child families in the $30,000-to-$58,000 income range.
- The effective tax rate increases by 3 percentage points, while making certain credits refundable triggers a tax penalty of up to 15 percent.
Here’s a little chart to paint a clearer picture.
Investor’s Business Daily: http://www.ibdeditorials.com/IBDArticles.aspx?id=304297643560219
NCPA: http://www.ncpa.org/sub/dpd/?Article_Category=20
~ Chuck
