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  • In Pictures: How High Will Taxes Go?

    What’s the latest plan from the left to pay for President Obama’s latest batch of stimulus spending? More taxes on high-income earners, of course. And if Senate Majority Leader Harry Reid (D-NV) gets his way, the United States’ average marginal top tax rate would be higher than all but two of the 30 most economically developed countries in the world.

    Reid has proposed a 5.6 percent surtax on incomes of married filers earning over $1 million starting on January 1, 2013–and that would push the average top U.S. income rate to 55 percent. (The surtax would kick in at $500,000 for individual filers.) In the chart below, we break down the top rate for each state and compare the numbers with other countries around the world.

    Surtax would push top U.S. income tax rate to 55 percent

    In a new paper, “The Millionaire Tax: Yet Another Job-Killing Tax Hike,” Heritage’s Curtis Dubay takes a look at the impact the tax increase would have on job creation in America. In short, it would kill jobs, all in the name of creating them:

    The millionaire surtax is contradictory to the stated aim of the President’s jobs plan, which is to create jobs. The tax hike would fall squarely on the very job creators that the President wants to add jobs and reduce their incentive to add new workers.

    Taxpayers earning more than $1 million a year are investors and businesses that are directly responsible for creating jobs. Investors provide the capital to existing businesses and startups so they can expand and add new workers. Raising their taxes would deprive them of resources they could invest in promising businesses that are looking to add employees. Raising their tax rate would deter them from taking the risk to invest . . .

    The millionaire tax would end up costing the U.S. economy more jobs than the President’s jobs plan it is supposed to pay for would ever create. It would ruin American competitiveness among other developed countries.

    Click here to read more of Dubay’s paper, “The Millionaire Tax: Yet Another Job-Killing Tax Hike.”

     

    Posted in Featured [slideshow_deploy]

    9 Responses to In Pictures: How High Will Taxes Go?

    1. @kevinm13 says:

      Class warfare no matter how practiced will always be detrimental to the economy. Less taxes, less regulation and less government are always good for jobs and the economy. Uncertainty is bad. Certainty about 0bama losing his job will be good.

    2. ozzy6900 says:

      Just out of curiosity, does Senator Reid intend to include all of his fellow Senators and Congressmen in this tax or will they be exempt as they will be with Obama-Care?

    3. steve h says:

      The current top rate for federal income tax is 35% – how does adding 5.6% on top of that for millionaires come to 55%? Why the suddent inclusion of state income tax?

      • Bill says:

        So state taxes dont count? Property taxes dont count? Sales taxes dont count? City and county taxes dont count? Gas taxes dont count? The list goes on and on…do you see why the U.S. is falling behind? If not, you must be on welfare

    4. Bobbie says:

      open your minds lefty's. the more taken from the millionaires, the less ability and greater job loss in areas millionaires once had the financial ability to choose to spend their money on!! Why is the president so adamantly against the American dream of any persons that successfully made it for themselves the American way, without government? What purpose is this money for besides more government control?

      Intentions have only looked good on the surface with Obama. This is a trap like all Obama's game playing that leads only to controversy headed for costs and collapse. With the population in this country, if people were paying their "fair" tax share according to their income and held responsible, there is absolutely no reason to implement tax increasing on any sector of the private, but for sinister reasons of government and the cost of GOVERNMENT GREED!

      reid and pelosi only appeal to the weak and feeble minded instead of encouraging strength and knowledge. although unqualified as they lack both themselves and don't speak American anymore. Their tongues speak socialist, racist, communist and with authority! Labeling all successful people under one judgment and all people less than successful, unable to live for themselves. Encouraging and proud of those with the same narrow thinking.

      Neither had to hold the hands of government to get to where they're at. Nancy Pelosi's finances were established by capitalism. Not sure if reid ever had qualifications to make it in the private sector? Quite sure they're both overpaid by helping themselves in stealing more from tax payers. Yet they want to be sure the rest of us, including their supporters of ignorance (protesters) are wrongly influenced by their control to steal from those the government can.

      Freedom to capitalize and capitalism under freedom doesn't control our individual lives and are within OUR CONTROL! Government and their demand for more money with no need, will take more and more until it's all controlled by daddy government. no more freedom, kids!

      WAKE UP PROTESTERS, PLEASE! Your protest is bribed (paid for by crooked capitalists but "capitalists" just the same you are sent out to protest,) WHICH MAKES YOU INSINCERE. The government is behind your influence and it's the government that promotes your ignorance. Nancy Pelosi, Harry Reid see you only as useful idiots and Obama sees you and the whole democratic party as useful idiots. You are useful, but are you really educated idiots? Please wake up!

    5. Stirling says:

      Class warfare is just a page taken from Saul Alinksky "Rules for Radicals." The Millionaire tax is just a means to single out those who have succeeded, and turn people against capitalism. If the government politicians were serious they would scrap the existing tax code in favor of a Flat or Fair tax system, anything short of that is just giving lip service to the media.

    6. TimAz says:

      The short answer to you question. How high will taxes go? They will rise until Americans will no longer tolerate them. I suppose they could rise until there is no existing wealth left to tax. With unemployment and a third world existence staring one between the eye's is a sure way to educate most about economics and its link to freedom in record time. Had enough yet?

    7. John, Napa says:

      Name me one millionaire that actually pays these rates that you speak of. Go on, name one.
      Name me one Corporation that pays these rates. Go on, name one.
      Your chart and your article are both completely worthless scare tactics that no educated person would believe.

      • Clearhead says:

        Disregarding your meaningless and unanswerable (even by you) "challenges", an analysis of the rest of your comment reveals that there is absolutely nothing of any real substance in your kindergarten opinion of this article. Now, we have a question for you: How in the world could you possibly ever know what an EDUCATED person would believe?

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