|
|
| President Obama's Proposed Tax Changes for 2011 |
President Obama has proposed raising the top 2 tax brackets. The 35% top tax rate on income would increase to 39.6%, and the 33% tax rate would rise to 36%. Included in the proposal are new limits on itemized deductions, and the top rate on long-term capital gains, dividends would rise to 20% from 15%. According to President Obama most of these changes would affect upper-income Americans, described as families making more than $250,000. Also proposed is federal estate-tax changes that would be effective in 2010: the basic federal estate-tax exemption is $3.5 million, and the top rate is 45%, excluding transfers between spouses which are tax-free. Currently estate taxes are to be eliminated for 2010 however, president's plan would extend the $3.5 million estate-tax exemption level into future years. |
|
|
