Gerry Fuerst: Tax miscalculations

December 25, 2012 

Tax miscalculations

In regards to the Dec. 16 letter “$200! Oh, no!,” where is the writer getting his data?

In the example the writer gave, he calculates that “those making $300,000 will pay an additional $200 per year” with Obama’s proposed income tax increases. The $200 represents the additional taxes on the income over $250,000.

From his calculation, the tax rate on income exceeding $250,000 (i.e., $50,000) will be increased by only 0.4 percent from today’s rate. A 0.4 percent increase? Where did he get this?

Obama wants the two upper-income tax rates to increase by 3 percent and 4.6 percent, respectively. (On top of this, an additional 0.9 percent Medicare surcharge will apply to all income over $250,000 for joint filers starting in 2013.)

Using these numbers, a tax increase of several thousand is more realistic for those making $300,000.

Gerry Fuerst

Cary

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