Obama 2013 Tax Plan: Why the President is Gunning For the Rich

Let's be clear: Most consumers of the Obama post-campaign campaign agitprop have as much of an idea of the difference between an increase in the tax rate and an increase in tax revenue as they do the difference between profit and profit margin. President Obama campaigned relentlessly on raising the tax rate on the top earners. "Those people like me, who can afford to pay a little bit more to help reduce the deficit," he would say in that sotto voce that became so familiar on the stump.

Marginal Tax RateSingleMarried Filing Jointly or Qualified Widow(er)Married Filing SeparatelyHead of Household 10% $0 – $8,700 $0 – $17,400 $0 – $8,700 $0 – $12,400 15% $8,701 – $35,350 $17,401 – $70,700 $8,701 – $35,350 $12,401 – $47,350 25% $35,351 – $85,650 $70,701 – $142,700 $35,351 – $71,350 $47,351 – $122,300 28% $85,651 – $178,650 $142,701 – $217,450 $71,351 – $108,725 $122,301 – $198,050 33% $178,651 – $388,350 $217,451 – $388,350 $108,726 – $194,175 $198,051 – $388,350 35% $388,351+ $388,351+ $194,176+ $388,351+

(Table from Wikipedia)

The president has been making a big deal out of no new taxes for those making less than $250,000, but as you can see from the above chart, $250,000 is in the middle of the 33% to 36% tax bracket. But, let's use the fact that the president wants taxes to go up for those making $250,001 and up. If a small business owner draws a salary of $120,000, and his/her spouse brings in $60,000, then the business need only show a profit of $70,000 to exceed the magic $250,000 number.