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The First Step

The First Step

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Michael Ettlinger, Michael Linden, and Reece Rushing on what we can do to address the long-term federal budget deficit.
Michael Ettlinger, Michael Linden, and Reece Rushing on what we can do to address the long-term federal budget deficit.

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Published by: Center for American Progress on Dec 06, 2010
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11/08/2011

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Under the president’s budget plan, the marginal income tax rates on ordinary
income will stay the same as they are right now for 98 percent of all Americans.
Tat is to say that the brackets will remain precisely where they are now for
income up to $250,000 (for married couples). Te top two tax brackets will go
from 33 percent and 35 percent this year to 36 percent and 39.6 percent next year,
which would afect only the richest 2 percent of Americans.

Four out of the fve complete plans ofered here leave the ordinary marginal
income tax rates right there. Note that these rates are wholly diferent from
(though related to) the adjusted gross income surtax described above. Te AGI
surtax is a small tax applied to adjusted gross income above a certain threshold.
Currently there is no AGI surtax in the tax code. Te ordinary marginal income
tax rates are the standard rates that all Americans pay on their taxable ordinary
income each year. Te 100 percent revenue plan does include small increases in
these rates for income between about $140,000 and $380,000.

Five plans for achieving primary balance | www.americanprogress.org 15

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