President Obama wants to raise taxes on anyone earning more than $250,000 per year. But according to the left-leaning Urban-Brookings Tax Policy Center, leaving the Bush tax rates in place for those earning up to $1 million would do little to affect tax receipts. Over the course of the decade, Obama’s plan would raise just $14 billion more than the $1 million cutoff point. Howard Gleckman of the Tax Policy Center explained:
The reality is only about 760,000 households (out of 157 million) make between $500,000 and $1 million. Fewer than 5 million make between $250,000 and $500,000 …. Even though each of these individual households makes a lot of money and pays a lot of tax, letting them keep their tax cuts of the last decade for one more year isn’t that big a deal.
Obama is going after those earning more than $250,000 because he wants to create class warfare. It’s that simple. A $1 million cutoff impacts far too few Americans for Obama’s liking. He wants a broader class of the “rich” to demonize, even if it doesn’t mean anything in terms of tax receipts. And all of these estimates are off in that they do not include dynamic scoring.