"I just wanted to say this is a great idea. I plan on checking everyday. Thanks!" -Jean
Read More Testimonials»

On the Finances Blog

Bankruptcy: The Power of the Clean Slate

It doesn’t take many clicks online to find writing and advice on how to shape up your finances, even First30Days has a great financial advice section found here. There are...

Read More About Bankruptcy: The Power of the Clean Slate»

Our Having More Money Experts

Douglas Andrew

Douglas Andrew

Owner and President of Paramount Financial Services, Inc.

Shared by First30Days View Profile»
Barbara Corcoran

Barbara Corcoran

Founder of The Corcoran Group and real estate contributor...

Shared by First30Days View Profile»
Lee Brower

Lee Brower

Wealth trainer, consultant and author

Shared by First30Days View Profile»

Meet all of our Finances Experts»

News

The latest news on this change — carefully culled from the world wide web by our change agents. They do the surfing, so you don't have to!

Obama's 'Tax the Wealthy' Policy

Obama's 'Tax the Wealthy' Policy

Obama’s camp has released some information on the tax policies he plans to implement should he be elected as president. Broken down into four categories, they explain the changes and what it could mean to the public.

Income Taxes
He plans to change the top two tax brackets back to their pre-2001 levels of 36% and 39.6%; a raise from the current 33% and 35%. There would also be some limitations on the amount of a deduction or personal exemption high-income taxpayers may take.

However, these changes may not affect all people within these two brackets. It will depend on whether they’ve been subjected to the Alternative Minimum Tax (AMT) in the past. The way this works is that they are supposed to calculate their income tax under the regular bill and the AMT. If their bill under the AMT is bigger, then they have to pay that. However, these changes only decrease the spread between the regular bill and the AMT bill. Either way, if the AMT bill is bigger, they would still pay that. So it’s not really affecting them until the AMT falls well below the regular tax bill, which isn’t expected.

Payroll Taxes
The current cap on payroll that can be taxed to fund social security is $102,000. Anything over that amount doesn’t get taxed. However, under Obama’s plan, anything over $250,000 would be taxed. The amount between $102,000 and $250,000 would still be protected.

This will clearly help fund social security and make it stronger. As of now, most Americans are paying the tax on 100% of their income because they make less than $102,000. Those over that bracket are only paying on a portion of their income. So, someone making $204,000 is only paying tax on 50% of their income. Obama’s policy is meant to spread the tax out among the income levels.

Some changes will also be made to investment income tax and estate tax, which do not affect the majority of the population. There are some details still being worked out, but these changes could have major affects to the wealthy.

Do you agree or disagree with Obama’s plan? Why or why not?

Posted: 6/27/08
dirkthedog

Thank goodness! One of the most ridiculous things about social security was that it only taxed the incomes that are lower. I'm not sure I like the gap with no tax, but it is a BIG step in the right direction! Recessive taxes like the social security tax put undue responsibility on people who cannot afford the carry it.

bfebeach

Once again the poor man is paying and being over looked. When in reality the poor and middle class fund the goverment and the rich just get richer.