How Many in Centreville Might Feel Obama Tax Rate Increase?

President Obama wants to raise tax rates on those making $250,000 or more.

President Barack Obama hopes to raise taxes on Americans making $250,000, or approximately the upper 2 percent of incomes across the country.

There are no hard and fast numbers for the Centreville area on how many people make more than $250,000, but the latest IRS data available shows that more than 1,800 households in Centreville filed tax returns showing adjusted gross incomes of more than $200,000, the highest level income category reported by the IRS.

Obama's plan could raise $1.6 trillion in revenue over 10 years, partly by letting decade-old tax cuts on the country's highest earners expire at the end of the year, according to a report by the Associated Press.

The president would continue Bush-era tax cuts for all except those earning more than $200,000 and couples making more than $250,000. The highest rates on upper incomes would rise from 33 percent and 35 percent to 36 percent and 39.6 percent.

“The issue right now that’s relevant is the acknowledgment that, if we’re going to raise revenues that are sufficient to balance with the very tough cuts that we’ve already made and the further reforms in entitlements that I’m prepared to make, that we’re going to have to see the rates on the top 2 percent go up. And we’re not going to be able to get a deal without it,” the president said last week in an interview with Bloomberg Television.

Republicans so far have publicly rejected increases in tax rates, but have agreed that increased revenue from tax reform such as limiting some deductions and loopholes should be part of a comprehensive deficit reduction package, CNN reported Friday.

IRS tax data by ZIP code for the year 2008, the most recent available, breaks down the income tax returns from those areas by levels of adjusted gross income.

The IRS category showing adjusted gross income levels of $200,000 and above includes the earners Obama is targeting — those making $250,000 or more.

The number of returns at that level in Centreville ZIP codes are:

20120: 1,466

20121: 395

20122: 15

What do you think? Do you think the President should raise the tax rate on the top 2 percent?

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M Miller December 10, 2012 at 01:47 PM
More taxes on the top 2 percen will not solve our problems. The money that would be raised would run the government for less than 2 weeks. We need to bring entitlements under control and we need to reform the tax code. Why won't the president even consider looking at how the Rebublicans brought in $800 billion by dealing with the tax code? Why is he so insistent on raising taxes on what amounts to mostly small business owners? And why is no one talking about the Alternate Minimum Tax which will affect much of the middle class the president is so concerned about and which will kick in when the Bush tax cuts expire? If I ran my household the way the president and Congress are running our country, I would be put in jail as a con man.
D Harr December 10, 2012 at 04:18 PM
Amen M. Miller! The top 25% already pay 86% of all income taxes. The top 1% pay 39% of all income taxes, up 2% from when George W. Bush was elected in 2000. How much is enough? In 1970 when the top tax bracket was 70%, the richest 1% payed 19% of all income taxes. Now with the top rate at 35% they pay more than double that share. Look at any state that tried to hit their top earners with higher taxes, what happens - people move or find a way to hid their money (because it is their money - we tend to forget that!). Plus many small business owners file as individuals. Small business owners will have to lay off staff or decided to close up shop (especially with all the Obamacare taxes going into effect in 2013). Investments - what little there is right now - will dry up. We do not have a "revenue" problem in Washington. The problem is spending. No country can survive when its debt is larger than its GDP. The fiscal cliff everyone is talking about is nothing compared to the fiscal abyss we are going over.
Sandra December 10, 2012 at 09:34 PM
Yes, I think the top 2% can afford to pay more. Besides, they are not raising tax rates - they are going back to the tax rate that existed before the "temporary" cut. That Bush tax cut was never meant to be permanent anyway.


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