2 thoughts on “Obama’s Middle Class Tax Increase

  1. I am one of the authors of the article about Obama’s tax plan that is mentioned here. I want to clarify that our article does not find “middle class tax increases” under Obama’s plan in the sense of higher tax payments by the middle class. As our article makes clear, most people would pay lower taxes under Obama’s plan because he would cut taxes for the lower and middle classes.

    The point of our article, available at


    is that Obama’s tax cuts are designed in ways that raise MARGINAL tax rates and therefore reduce incentives to earn income. The marginal rate rises because the size of the tax cut falls as income rises. But, tax payments are lower under Obama’s plan (than under current law) at all of the income levels discussed in our article. The statement in this post that Obama’s tax plan “raises rates” should be amended to “raises marginal rates.”

    Alan D. Viard, Resident Scholar
    American Enterprise Institute

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s