Tax Rates 2011 Obama?

We were talking with my boss about Obama's tax rates for 2011 and he said that the income-tax increases proposed by President Obama on people with higher incomes will take effect in October 2010. But I also heard from another source that all the Tax Rates changes will be effective in 2011. Which is the correct date?

asked by Morrison in Politics | 3268 views | 02-01-2010 at 05:17 PM

Congress is all but certain to raise them a couple of years from now. Tax increases will hit both businesses and individuals.

President Obama's proposed income-tax increases on higher-income taxpayers would be effective in 2011. Barack Obama has proposed raising the top two tax brackets. The 35% top rate on ordinary income would increase to 39.6%, and the 33% rate would rise to 36%.
Currently there are six tax brackets: 10%, 15%, 25%, 28%, 33%, and 35%. Those tax brackets were implemented in 2001 and are scheduled to expire at the end of 2010. Obama proposes to continue using the 10% through 28% tax rates and to replace the top two rates with 36% and 39.6% rates.

Higher taxes will be part of a major overhaul designed to simplify the tax code, though it won’t do more than tinker around the edges.

answered by Gary | 02-01-2010 at 05:23 PM

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