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WSJ: Senate Bill's Marginal Tax Rates Could Exceed 100 Percent for Some

Image: WSJ: Senate Bill's Marginal Tax Rates Could Exceed 100 Percent for Some
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By    |   Monday, 11 December 2017 07:42 AM

The Senate tax bill's marginal rates for some high-income business owners could top 100 percent, The Wall Street Journal is reporting.

The marginal tax rate of more than 100 percent is a result of a combination of tax policies set up to help businesses and families, but deny them to the wealthiest people, according to the newspaper.

As incomes soar and tax breaks phase out, the richest people would be hit with regular tax rates and a hidden marginal rate, the Journal reported.

The marginal rates would go down as the taxpayer's income gets even higher and moves away from the phase out ranges, the newspaper said.

The Journal, using calculations from the Tax Foundation, provided the example of a married, self-employed New Jersey lawyer with three kids who earns about $615,000. Another $100 more in business income would require the attorney to pay $105.45 more in federal and state taxes.

But lawmakers are trying to stop this from happening as they meet to reconcile the House and Senate tax bills, the Journal noted.

"This is a big concern," said Scott Greenberg, a Tax Foundation analyst. "It would be unfortunate if Congress passed a tax bill that had the effect of making additional work and additional income not worthwhile for any subgroup of households."

Meanwhile, The Washington Times noted Republicans have about two weeks to meet their Christmas deadline for passing the final tax bill as they continue to work out details.

But Democrats maintain Republican lawmakers are trying to rush through the passage of the bill before voters can determine what the legislation includes.

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The Senate tax bill's marginal rates for some high-income business owners could top 100 percent, The Wall Street Journal is reporting.
senate, tax bill, marginal, high-income, business, owners
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2017-42-11
Monday, 11 December 2017 07:42 AM
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