Tax cuts, and whether they will expire at the end of 2010, have been discussed for months. Sadly, almost every article/column/blog post I’ve read has been wrong on simple facts.
The facts are really simple. Proposals advanced by President Obama and the Democrats in Congress leave the so-called Bush tax cuts in place with respect to the first $250,000 of taxable income earned by families. Thus, the Bush tax cuts will remain in place for all taxpayers who pay federal income tax, as to the first $250,000 of taxable income.
The 2% figure you hear about represents the percentage of Americans with taxable incomes that exceed $250,000. As for them, they get the lower tax rates on the first $250,000