How does Obama's tax plan make sense?

Question

I was just studying Obama's tax plan on his www.change.gov website. Notice what it says:
"Families making more than $250,000 will pay either the same or lower tax rates than they paid in the 1990s. .... But no family will pay higher tax rates than they would have paid in the 1990s.GDP...The plan is a net tax cut -- his tax relief for middle class families is larger than the revenue raised by his tax changes for families over $250,000. ..."

Ok so in the first part he says even those making $250,000 or more will pay the same or LESS in taxes than they had been paying....But at the end, he talks about the revenue raised by "tax changes for families" making more than $250,000.  How is there going to be revenue raised by his changes for the wealthy if he's not going to raise their taxes?

ang§tgegner · Accepted Answer

The top 5 percent of all payers do pay more than half the income tax. They pay about 59.2 percent of all individual income tax, according to an analysis by the Tax Policy Center, a nonpartisan institute run jointly by the Urban Institute and the Brookings Institution.

40 percent of Americans pay no income tax. This claim is supported by the Tax Foundation, a nonpartisan tax research group that promotes transparency in the tax code and economic growth.

There's a small caveat to the 40 percent number — it includes nonfilers, typically taxpayers who don't have to file returns because their incomes are too low. It's logical to assume that most nonfilers don't pay income taxes, but it's possible that some did if they had income taxes withheld by an employer. This is probably a very small number, because people with low incomes have an economic incentive to file a return and get a refund.

The U.S. income tax system is progressive, which means that rates increase as income increases. Given that structure, it makes sense that people with higher incomes pay more taxes, and people with low incomes might pay no tax at all.

? · Answer

Basically he is going back to pre-Bush Days..the days of Clinton when the $250,000.00 paid a 90% of the tax bracket.  But we all know their still is a lot of loopholes in the IRS laws and also the *deductions* are far greater when you are in this tax bracket.  Thus you spend more and you save more.

Anonymous · Answer

Find the law that says we are required to file any income taxes or requiring everyone to file a 1040.  According to our Constitution it is against the law to make anyone pay income tax.  Obama is lying to everyone, all his changes are lies and he writes them down so that nobody can understand and hopes if you do not understand then you will believe, and it appears to be working.

Smooch The Pooch · Answer

It's going to be higher than what they have been paying all along. Otherwise, he wouldn't cleverly disguise it "in the 1990's". I remember the 90's well, couldn't afford much.

Ms. P · Answer

The Bush tax cuts expire in 2010, all he has to do is sit back and wait.

Anonymous · Answer

At least he's trying.

it's hard to unravel the 30 TRILLION DOLLAR Bush disaster.

"The Bush American Depression" will be a deliberate act to help global corporations profit.

Anonymous · Answer

Look, he said when he was campaigning he is raising taxes for those who make more than #250,000.00 a year, that is a quarter million dollars a year.  They need their taxes raised, they make ridiculous amounts of money.  You are not Gods reporter, Gods reporter would be more concerned about things to do with God than Barack Obama.

Anonymous · Answer

5% of the US population holds the most concentrated wealth in this country.

This minority is disproportionately Undertaxed.

And that is finally going to change.

Sky Blue Waters ! · Answer

He changed his mind anyway...
Suckers !

Anonymous · Answer

It's called a Democrat. What do you expect?

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How does Obama's tax plan make sense?

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