Tax Plan of Obama



Abstract

This research paper will provide you with brief information on the new tax policy of the Obama Administration for the year 2012. According to the new tax policy wealthy Americans will now pay a tax at the rate of forty five percent which previously was thirty five percent. This new tax plan would guarantee long- term capital gains at a top rate of twety percent; up from fifteen percent. The upshot of this tax plan is that some of the taxpayers would now pay a good forty three point four percent as the federal taxes, based on their dividends starting from next year. Along with that it would also present the views that government officials hold regarding the new taxation policy.

Tax Plan of Obama

Tax plan of Obama and the view of government

The President of the United States of America Barrack Obama announced fresh revenue of 1.4 trillion dollars generated from the citizens of America at the top of the scale income. This proposes higher taxes regarding the wages along with the investments made by people. This also includes the limiting breaks taken by the people in the form of retirement savings and insurance of people's health. The tax proposal which was announced by the administration of Barrack Obama for the fiscal year of 2013 was immediately rejected by the group of business men's and other republicans sitting inside the congress. According to them this new tax plan is Barrack Obama's strategy of the re-election. No matter this new tax policy for the year 2012 occurs inside the congress, or it is just a platform set by Obama government for the re-election. This policy is highly disconcerting the business groups residing in the United States of America (Harris, 2012).

According to a bill introduced in congress by Obama administration, a bid was made regarding fair taxes and a reduction in the deficit. The previous tax policy was much lighter towards the income of the wages. According to some government officials it would simply be impossible for people to devote a humungous amount of two hundred and six billion dollars for high-earning American citizens. The system for the taxing investment income regarding wealthy American is juts simple wrecked (Barro, (2012). Few other essential points of discussion regarding the Obama administration new tax policy are.

The new higher Rates

The Obama administration proposed that a top and wealth individual would pay the tax income tax rate of thirty nine point six percent in 2013, up from thirty five percent. His budget would tax long- term capital gains at a top rate of twenty percent, up from fifteen percent. The top dividend tax rate is now fifteen percent. An additional amount of 3.8 percent of the tax will now be surfed on the unearned income of the couple who together are earning an amount of two hundred and fifty thousand dollars. It is essential for the individuals who earn more than two hundred thousand dollars, to participate in the law of health ...