Does the Weiner Plan actually create new tax brackets?
In form, no. In effect, yes. The Weiner Plan creates a new surtax of 7% on all income over $1 million and a surtax of 10% on all income over $1 billion. Tax brackets are set up so that income between different levels is taxed at different rates 10% for income up to about $15,000, 35% on income over $336,000, with gradations in between. The Weiner Plan adds surcharges on income over $1 million and over $1billion. Q: Why wouldnt a family making $150,000 refuse a $5,000 raise for fear of having a tax break? A: All of the benefits under the Weiner Plan are phased out so that there is no tax cliff that would punish a family for economic success. For example, the benefits of both the 10% tax cut and the doubling of the child tax credit are proportionately phased out as income grows from $150,000 to $160,000 for joint filers. The AMT relief is phased out as income grows from $200,000 to $225,000 and the zero tax bracket is phased out as income grows from $25,000 to $30,000. Q: How does this p
