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Obama's Tax Hike Plan Would Require Rates That Are Impossible

Created on April 15, 2011

Obama's Tax Hike Plan Would Require Rates That Are Impossible

Obama’s Tax Hike Plan Would Require Rates That Are Impossible

President Obama has repeatedly pledged to raise taxes only on the “rich.” But if he raised taxes on only the top two income brackets, their rates would need to rise well beyond 100 percent—a fiscal impossibility— just to close the 2010 budget deficit.

Chart 2 •  WM 3224

heritage.org

Single and Joint Filers:

$373,650+

Single Filers:

$171,850–$373,650

Joint Filers:

$209,250–$373,650

Tax rate necessary to cover deficit

Current tax rate

142%

35%

132%

33%

Source: Heritage Foundation calculations based on data from the Internal Revenue Service and the White House Office of Management and Budget.