Something You May Not Know About the Extension of the Bush Tax Rates
On the extension of the Bush tax cuts, there may be something that you don’t know. The popular understanding of Obama extending the Bush tax cuts is that they are for people who make less than $250,000. And most people think that that means if you make $250,000 or more, that you are not going to benefit from the extension of the Bush tax rates.
By the way, they’ve been in there 11 years.
They’re not “tax cuts” anymore.
They are the rates. They are the current rates in tax law. To keep calling these things “tax cuts” is really a huge mistake, not only in choice of words, but in fact. We’ve long since passed when they were “tax cuts.” They’re now the law of the land. A little-known fact is — and I don’t know what impact this would have on people if they figured it out, but — everybody will receive a tax cut, even the rich, on the first $250,000 they earn. Everybody will. Obama and the Democrats want people to believe that if you earn $250,000 or more, you don’t benefit from the extension of the rates.