Wednesday, April 30, 2008

Taxes and Spending

In Social Security and Medicare Projections: 2008, the following caught my attention.

Can Higher Taxes Solve the Problem? The CBO also found that if federal income tax rates are adjusted to allow the government to continue its current level of activity and balance the budget:
  • The lowest marginal tax bracket of 10 percent would have to rise to 26 percent.
  • The 25 percent marginal tax bracket would increase to 66 percent.
  • The current highest marginal tax bracket (35 percent) would have to rise to 92 percent!
Additionally, the top corporate income tax rate of 35 percent would have to increase to 92 percent.


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