Where tax rates are headed

Washington is engaged in a partisan fight over whether to extend the Bush tax cuts. Here’s what income and investment tax rates might be under 3 different scenarios.

Income** If cuts extended for all If cuts expire for rich* If cuts expire for all
10% 10%  
15% 15% 15%
25% 25% 28%
28% 28% 31%
33% 36% 36%
35% 39.6% 39.6%
Long-term cap gains

(0% for some)

15% for most (0% for some);
20% for high-income fliers
(10% for some)
Dividends 15%
(0% for some)
15% for most (0% for some);
20% for high-income fliers
Ordinary income tax rates
* Obama proposal. ** Value of some tax breaks would be reduced because of exemption phaseouts and limits on deductions. Source: Tax policy center

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