Reply to What happens to families earning over 200k a year under Obama vs Romney, Results are SHOCKING

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I love how all these anti-Obama/Democratic party post titles use either all caps, or lots of !!!!, or words like SHOCKING. [/quote]

Add it up and it is shocking, it's not mearly letting the bush cuts expire it's much more. Obama has pulled the wool over your eyes let me add it up for you based on a family that makes 250k a year (typical for DCUM standards).

Obama would preserve the Bush tax rates at the low end (10%, 15% and 25%) but raise the top two rates to [b]36% and 39.6%. [/b]

Romney would also like to repeal the new health reform law. If he succeeds, that would mean a repeal of the 0.9 percentage point increase in the Medicare tax on high-income households called for under that law. [b] A .9% tax increase.[/b]

Obama: Would permanently adjust the AMT for inflation.
Romney:[b] Would abolish the AMT[/b].

Obama: Has proposed[b] limiting the value of itemized deductions and other tax breaks[/b] such as exclusions for those with [b]adjusted gross income over $200,000[/b]. Today, many filers in that group can deduct 33% or 35% of a qualified expense. Obama would limit that to 28%. THIS one is a real killer for us.

So under Obama your tax rate will go up 3% and another .9% and then you would lose your itemized deductions if you make over 200k% which is probably your mortgage. Add these all up and it is about a 4% tax hike and you will lose your itemized deductions. IT IS [b]SHOCKING[/b].

Romney is actually pledging to [b]LOWER [/b]the tax rate for everyone. Romney: Would reduce each of the Bush-era income tax rates by 20%. So the top rate would fall to 28% and the bottom rate would fall to 8%. Romney would also abolish the AMT, Obama would just extend it.

The above are only how it will affect families directly. Obama is proposing to increase capital gains and remove carried interest tax benefits for investment firms.  Ok great SCREW them right? Not so fast, guess who hires and creates new businesses that create private  jobs? The above people. Those same people are the ones that hire the above families. I know a lot of DCUMers and I would say about 30%-40% of area are on the government dole (government jobs, contractors etc...) but outside of this area the majority of jobs (85%) are in the private sector. So you can see the disconnect of washington vs the country.

http://www.gallup.com/poll/141785/gov-employment-ranges-ohio.aspx[/quote]

You don't seem to understand how marginal tax rates work. Or the legislative process. Or how DCUMers make their money.

Since you're talking about a "typical DCUMer" who makes $250,000.

-- That's probably all salary, and not investment income, so the .9% tax increase is likely to be negligible. 
-- They are not affected at all by the top two income tax rates. The 33% rate kicks in for married couples with more than $212,300 of taxable income, which means that if they are homeowners with typical deductions and exclusions (such as FSAs, etc), they probably have to gross around $260,000 to be affected. And even then, the 33% rate only applies to a fraction of their income. The top rate doesn't kick in until taxable income of $379,150, which means a family would have to have a gross income around $425,000 with normal deductions and exclusions to be affected.
-- Your comment about the beneficiaries of carried interest creating private jobs is demonstrably false. Even so, it doesn't justify a lower tax rate than the worker bees.
-- Your comment about a 4% tax hike implies that is on a couple's entire income. That is false. Look up the definition of "marginal" tax rates.
-- The limitation on itemized deductions really isn't a "killer" as you say. Your typical DCUMer (your words) who makes $250,000 and has, say, $50,000 of itemized deductions. Assuming they even pay IN the 33% bracket (see my second point), the additional tax on that is 50,000 X .05, or $2,500. Yes, it's not nothing, but "killer?" Come on.
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