Reid Surtax Will Kill Jobs

ATR ^ | 2011-10-10 | Ryan Ellis

[92nina]

Some quick talking points on the Reid surtax, up for consideration this week in the Senate:

• Facing a revolt from within his own party over the tax hikes contained in President Obama’s “Stimulus 2.0” plan, Harry Reid has come up with an alternative tax increase that may actually do more economic damage and kill even more jobs.

• Beginning in 2013, a new 5.6 percent “surtax” would apply to modified adjusted gross income which exceeds $1 million ($500,000 in the case of married filing separately returns). After 2013, this figure would be adjusted for inflation

• Because the top marginal tax rate is scheduled to rise from 35% today to 39.6% in 2013, the Reid surtax would create a new top marginal tax rate of 45.2%--the highest level since before the 1986 Tax Reform Act.

• Since this surtax affects adjusted gross income, not taxable income, this is also a backdoor claw-back of every itemized deduction taken by taxpayers—including mortgage interest, property taxes, state and local taxes, and charitable contributions. Interestingly, the deduction for speculative “margin loan” investment interest is held harmless.

• The Reid surtax is a permanent income tax hike which would be used for temporary tax relief and permanent new spending programs.

• In addition, the Obamacare law raises the top Medicare payroll tax rate from 2.9% to 3.8%. When combined with the scheduled hike in the current top rate and the Reid surtax, this would create a new tax rate on small employer profits of approximately 49 percent. When state income taxes are taken into account, the top income tax rate on small employers will easily exceed 50 percent under the Reid surtax.

• The Treasury Department reports that 80% of the taxpayers affected by the Reid surtax are small business owners...

Read more: http://www.atr.org/reid-surtax-kill-jobs-a6512#ixzz1aUc8TmZ6

[92nina]

Harry Reid wants to impose a "surtax" on income which exceeds $1 million. This will kill jobs since this is a tax hike on small businesses.

Take this article and others I found to the fight to the Libs on their own turf; put the Left on the defensive at Digg and at Reddit and in Stumbleupon and Delicious

[DustyMoment]

Reid Surtax Will Kill Jobs

Well, THIS is a stop the presses moment.

(IOW, No sh!t, Sherlock!)

[DustyMoment]

Reid Surtax Will Kill Jobs

Well, THIS is a stop the presses moment.

(IOW, No sh!t, Sherlock!)

[DustyMoment]

Reid Surtax Will Kill Jobs

Well, THIS is a stop the presses moment.

(IOW, No sh!t, Sherlock!)

[SERKIT]

The bill should be introduced as “Son of Porkulus”.

[businessprofessor]

The rats have outdone themselves with this tax increase proposal. It seems that this tax increase applies to all income (earned and investment). Legalized theft is too nice to describe this proposal.

[Tublecane]

“Harry Reid wants to impose a ‘surtax’ on income which exceeds $1 million. This will kill jobs since this is a tax hike on small businesses”

No, silly, Buffet already told us that businesses don’t ever use extra money when it’s lying around. They...eat it, or something. I don’t know, but they certainly don’t spend it on stuff we all need, like bridges and bankrupt green “energy” companies.