How Many in Huntington-Belle Haven Might Feel Obama Tax Rate Increase?
President Obama wants to raise tax rates on those making $250,000 or more.
President Barack Obama hopes to raise taxes on Americans making $250,000, or approximately the upper 2 percent of incomes across the country.
There are no hard and fast numbers for the Huntington-Belle Haven area on how many people make more than $250,000, but the latest IRS data available shows that more than 1,200 households in Huntington and Belle Haven's 22303, 22306 and 22307 ZIP codes filed tax returns showing adjusted gross incomes of more than $200,000, the highest level income category reported by the IRS.
Obama's plan could raise $1.6 trillion in revenue over 10 years, partly by letting decade-old tax cuts on the country's highest earners expire at the end of the year, according to a report by the Associated Press.
The president would continue Bush-era tax cuts for all except those earning more than $200,000 and couples making more than $250,000. The highest rates on upper incomes would rise from 33 percent and 35 percent to 36 percent and 39.6 percent.
“The issue right now that’s relevant is the acknowledgment that, if we’re going to raise revenues that are sufficient to balance with the very tough cuts that we’ve already made and the further reforms in entitlements that I’m prepared to make, that we’re going to have to see the rates on the top 2 percent go up. And we’re not going to be able to get a deal without it,” the president said last week in an interview with Bloomberg Television.
Republicans so far have publicly rejected increases in tax rates, but have agreed that increased revenue from tax reform such as limiting some deductions and loopholes should be part of a comprehensive deficit reduction package, CNN reported Friday.
IRS tax data by ZIP code for the year 2008, the most recent available, breaks down the income tax returns from those areas by levels of adjusted gross income.
The IRS category showing adjusted gross income levels of $200,000 and above includes the earners Obama is targeting — those making $250,000 or more.
The number of returns at that level in the Huntington - Belle Haven ZIP codes are:
What do you think? Do you think the President should raise the tax rate on the top 2 percent?