How Obama’s Tax Plan Will Affect You

I found a cool article that highlights how President Obama’s tax plan will affect everyone based on their incomes and filing status. It doesn’t cover all the possible income / family situations but you should be able to get a rough estimate by looking at it.

Here’s a look at how the plan impacts two different groups of people…

Income: $35,000
Status: married, two children under age 17
Old taxes: $0 taxes paid; $2,900 received from government
New taxes: $0 taxes paid; $4,100 received from government
Difference: $1,200 more from the government

“The $400 Making Work Pay tax credit would apply even to households that paid no income tax or already received payments from the government. An adjustment to the earned income tax credit for married couples would mean that a family of four earning $35,000 could receive $4,100 in income support.”

 
Income: $1 million
Status: married, two children under 17 
Old taxes: $256,900
New taxes: $310,000
Difference: $53,100 more in taxes

“Only about 1% of married people filing jointly have an income this high, according to the Internal Revenue Service’s Statistics of Income division. Someone earning $1 million a year would see a big tax increase under the Obama plan, paying an additional $25,400 from higher tax rates and an estimated $27,700 from the limitations on itemized deductions and personal exemptions.”