Tax Provisions Affecting Only High-Income Taxpayers
During the 2008 campaign, President Obama promised that he would raise taxes only on households with the highest income—over $250,000 for married couples and over $200,000 for single people. In keeping with that promise, he proposes to increase taxes for those taxpayers by allowing the 2001-03 tax cuts to expire as scheduled in 2013 and limiting the value of itemized deductions to 28 percent.
Compared against current law, these provisions would affect less than 5 percent of households, increasing taxes for about five-sixths of them and cutting taxes for the rest. Taxpayers at the very top of the income distribution would be much more likely to face tax increases: among those in the top 1 percent, more than 85 percent would see their tax bills rise by an average of about $22,000 while 2 percent would pay an average of about $400 less tax.
The net two sections discuss in greater detail the president’s tax proposals affecting only high-income taxpayers.
Tax Provisions Affecting Primarily High-Income Taxpayers
2013 versus current law by cash income
2013 versus current law by cash income percentile
2013 versus current policy by cash income
2013 versus current policy by cash income percentile