Yesterday we noted that the U.S. has the second-highest corporate tax rate in the world. Currently, Americans’ personal income tax burden is not nearly as bad, but under Sen. Barack Obama’s tax plan, it would be.
Combining Obama’s promise to end the Bush tax cuts with his promise to uncap the Social Security payroll tax for those making more than $250,000, the Tax Policy Center notes that Obama would create a top marginal rate of almost 60 percent. The top rate would exceed two-thirds and could even approach 70 percent for citizens who work in high-tax state and localities such as New York City and parts of California.
Commenting on Obama’s tax-raising plans, Paul Krugman writes: “[I]t would push tax rates on some high-income Americans back to the levels of the 1970s.” For those of you unfamiliar with Krugman, he meant that as a compliment.
Cross-posted at The Next Right.