Thinking on This Week's Senate Surtax

The Senate Democrats have offered yet another tax to pay for yet another $447 billion stimulus package. They now want to impose a 5.6% surtax on income over $1 million per couple.

Let’s add-up the increases that are being discussed or have already been passed into legislation:

·         The expiration of the Bush tax cuts                          39.6%

·         The phase-out of itemized deductions (Pease)        1.19%

·         The phase-out of personal exemptions (PEP)           1.15%

·         The Medicare surtax on investment income            3.8%

·         The Medicare surtax on earned income                    0.9%                   

·         This week’s Senate Democrat proposal                    5.6%

                                                                                              --------------            

                                                                                                                       52.24%                                                                          

I doubt this list is complete as the above is just off the top of my head. 

You get the idea.