Tags: Barack Obama | taxes | increase | obama | congressional | budget | office

CBO: Taxes Rising Under Obama

By    |   Thursday, 13 November 2014 08:21 PM

So much for the "relief" in the American Taxpayer Relief Act of 2012.

Federal taxes are rising under President Barack Obama for Americans at all economic levels, with the highest earners seeing the steepest hikes in income tax rates, The Washington Post reports, citing a new study from the nonpartisan Congressional Budget Office.

The CBO report found that near the top — among the 1 percent — earners paid an average tax rate of about 33 percent in 2013, up from 29 percent in 2011.

The CBO study suggests that "President Obama appears to have achieved at least one of his goals for the nation's pocketbook: The very richest Americans are finally shelling out a bit more in federal taxes," writes Lori Montgomery of the Post's Wonkblog.

But tax hikes are hitting every bracket, including the bottom 20 percent, thanks to a last-minute deal struck by the White House and Congress in January 2013 to keep the country from sailing off the "fiscal cliff."

That deal, the American Taxpayer Relief Act of 2012, forestalled bigger across-the-board tax hikes on individuals and businesses that were set to take effect that month, but it didn't provide uniform "relief."

The Post notes that "some taxes went up nonetheless."

The very wealthiest households saw their income tax rate climb to almost 40 percent, from 35 percent. Less wealthy households lost assorted tax breaks, and the very poorest had to give up the payroll tax deduction championed by Obama, the Post reports.

The CBO also found that, post-fiscal cliff, the average tax rate for the bottom 80 percent of U.S. earners is "well below" what it's been on average since the late 1970s — while for the top 1 percent, the average rate is now "well above" what the highest earners paid on average over the same three decades-plus, the Post reports.

Even before the fiscal cliff deal, however, income brackets and tax burdens were unevenly distributed, the Post reports, with CBO figures showing that in 2011, the richest one-fifth of households took just over half of the country's pre-tax income, and paid more than two-thirds of all federal taxes.

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So much for the relief in the American Taxpayer Relief Act of 2012. Federal taxes are rising under President Barack Obama for Americans at all economic levels, with the highest earners seeing the steepest hikes in income tax rates, The Washington Post reports, citing a...
taxes, increase, obama, congressional, budget, office
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2014-21-13
Thursday, 13 November 2014 08:21 PM
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