President Obama has proposed extending the Bush-era tax cuts for households making less than $250,000 a year. Here's a look at who would end up paying higher taxes.
Under President Obama’s latest proposal, American families with taxable incomes of more than $250,000 a year would get a tax increase next year.
That’s because Mr. Obama is urging Congress to extend the Bush-era tax cuts only on amounts less than that.
So who are the people who would be forking over more of their money to Uncle Sam, and are they rich?
They could be your neighbors, one a banker and the other a lawyer, especially if you live in an expensive high-rise in New York City. Or, it could be the rancher who is still driving a 1980s-era pickup truck. Or, maybe it’s the retiree in Florida who plays tennis every day and still tells his son or daughter how to run the family business. Many are likely to be entrepreneurs.
“Some of these people are small-business owners and employers,” says Don Siegel, dean of the business school at the University at Albany. “They will get slammed because of this tax, the Obamacare taxes, and the increase in taxes on investment income.”