If they remove the cap, the combined federal tax rate for high-income earners will approach 50%.
High-income earners may be wondering why they should even bother going through this two-step process each year.
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The White House wants to substantially boost taxes on high-income earners, which will mean less investing and risk-taking.
McCain has proposed extending President Bush's tax cuts, including those of high-income earners.
"I think already, if you analyze who pays tax, the tax structure is quite stringent on high-income earners, " he said.
The purpose of the Pease limitation was to raise revenue by limiting some popular and common itemized deductions among high-income earners.
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In a tax code of 70, 000 pages there are innumerable ways for high-income earners to seek out and use ambiguities and loopholes.
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It also said McCain's plan would be beneficial primarily to high-income earners.
For high-income earners, capital gains are already taxed more lightly than income.
The education of our women and their ability to be high-income earners have altered social behavior and led to marriages later in life.
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She estimates the declining marginal spend plus tax hikes on high-income earners excuse me, the expiration of Bush tax cuts will shave 0.9% from U.S. economic growth next year.
One of the impacts from the fiscal cliff legislation to be felt by high-income earners is the reintroduction of the Pease limitation, reduces the amount of itemized deductions that certain taxpayers are allowed.
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At the same time, Clinton calls for measures that conservatives vehemently oppose, like higher individual taxes, including taxes on small-business owners, and a 12% payroll tax on high-income earners, plus tax increases on capital gains and dividends.
With higher tax rates on the horizon (the expiration of the Bush tax cuts on Jan. 1, 2011 and the 3.8% Medicare tax on high-income earners on Jan. 1, 2013), now is good time to evaluate conversion options.
If the joint committee decides, for example, that part of a balanced deal should be to eliminate tax subsidies for oil and gas companies or corporate jets, or if they decide to limit the value of itemized deductions for high-income earners as the President has called for, they can do that and they would raise revenue through doing that.
In exchange for the income tax (on high-earners), Congress would lower the tariff by 38%.
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It also excludes behavioral changes, and I suspect lots of high-earners would turn more of their income into tax-free gains.
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To the frustration of their core supporters, the Tories have not promised to reverse the government's income-tax hike for high earners.
Studying America's 1986 Tax Reform Act, which lowered the top marginal rate from 50% to 28%, Martin Feldstein, a Harvard economist, found that taxable income among high earners adjusted, dollar-for-dollar, with tax rates.
What has handicapped the middle class in the last four years is not that higher-income earners did not pay a high enough tax rate, but rather, that job losses during the crisis were disproportionally high in traditionally middle class sectors, and accompanying gains during the recovery disproportionately low.
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With the addition of a 50% top income-tax rate from April for high earners, tax lawyers fear that more of the highly paid will choose to leave Britain.
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Were the tax shelters that high-earners were encouraged to set up to shield themselves from high income tax rates actually better for building a sustainable, prosperous economy than the combination of low tax rates and no shelters?
For 2013, for high-earners who are subject to the new 39.6% top federal income tax rate, the benefit is even greater.
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Any child benefit paid to high-earners who have failed to opt out will be clawed back through the High Income Child Benefit Charge, administered by HM Revenue and Customs.
Thus, high-earners would still enjoy the benefits of lower rates on their first few hundred thousand dollars of income.
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