Announcing his 2011 budget proposal back in February, President Obama asserted that the government cannot spend as if deficits go without consequence, nor as if American tax-dollars are “Monopoly money.” But, as tax day arrives, many are questioning whether the president will keep his word, or default on a promise. While Tea Party supporters shout “Taxed Enough Already” until their voices crack, some are utterly stupefied by how such people ignore the figures surrounding the American Recovery and Reinvestment Act – aka the stimulus package -which recieves partial credit for for 2009’s record-breaking tax refunds, and a sixty-year low in federal taxes (a figure put forth by William Gale, co-director of the Tax Policy Center and director of the Retirement Security Project at the Bookings Institution.
So, what does Obama have planned for our hard-earned money? Well, by the close of 2010, Americans are likely to see: A raise of the top two income tax brackets from 33 to 36 percent, and 35 to 39.6 percent; A raise in the capital gains tax rate from 15 to 20 percent – along with an increased tax on dividend income from 15 to 20 percent – for married couples with incomes exceeding 250k.
From these figures, it’s difficult to understand where the protestors get their information; after all, Gerald Prante, a senior economist for the non-partisan research organization, Tax Foundation, admitted that the increases will only reflect upon 2 to 3 percent of the year’s total tax returns.