Taxes Blog

Finance Blogs » Taxes » Poll bolsters Obama tax plan

Poll bolsters Obama tax plan

By Kay Bell · Bankrate.com
Tuesday, July 10, 2012
Posted: 11 am ET

Politics and taxes are inextricably linked. Both rely on numbers, and both are adjusted to reflect constituent moods as much as economic needs.

In the case of President Barack Obama's latest tax proposal, he seems to have politics and some economic data on his side.

The president's plan announced on Monday would keep the current four lowest income tax rates in place through 2013, but bump the top two rates from 33 percent and 35 percent to 36 percent and 36.9 percent, respectively, for individuals making more than $200,000 per year and families with annual income exceeding $250,000.

The latest Congressional Connection Poll, conducted by Princeton Survey Research Associates International for United Technologies and the Washington, D.C., publication National Journal, found that most Americans prefer Obama's plan to extend the Bush-era tax cuts for lower earners only, as opposed to keeping them for everyone.

Sixty percent of those polled late last week said it is "very important" to extend the cuts for families making less than $250,000. Just 40 percent said it is "very important" to extend those rates for all taxpayers.

The numbers are even stronger for bumping up the top two rates when the percentages of poll respondents who said it was "very important" and "somewhat important" are combined. That total shows 68 percent place importance on extending the cuts for everyone regardless of income, while a whopping 82 percent say it's important to extend the lower tax rates for only those who make less than $250,000 a year.

Of course, this is just one poll. But it's consistent with what public opinion surveys on tax rates have been reporting for years. Most people have no problem with making the wealthy pay more in taxes.

The reason is obvious. Most of us won't be affected.

A recent analysis of higher taxes on higher earners found that fewer than 2 percent of Americans would face bigger Internal Revenue Service bills if the 33 percent and 35 percent tax rates were bumped up a bit.

Still, the GOP and its presidential candidate Mitt Romney are insistent that the rates must remain as is or economic growth will stall.

Really? We've had these tax rates in place since 2001. Why then are so many people still unemployed?

Because if you look at the economic numbers, taxes really don't affect hiring that much.

Data from the Bureau of Labor Statistics and the Bureau of Economic Analysis show that the tax policies of the George W. Bush administration did little for job creation. During the eight years when the tax cuts that bear Bush's name were put in place, job growth was just 2 percent, the lowest since the Truman administration.

The folks who participated in this latest poll probably didn't have this economic data at hand. But they did know that while they and their family and friends are out there looking for jobs, those with high-paying positions are doing just fine.

And they think it's time for those wealthier folks to share a bit more with Uncle Sam.

Keep track of the tax-rate debate, as well as get tips on ways to reduce your federal and state tax bills, by subscribing to Bankrate's free Weekly Tax Tip newsletter.

You also can follow me on Twitter @taxtweet.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
4 Comments
how to make money online
July 17, 2012 at 1:58 am

Thank you for some other magnificent article. The place else may just anybody get that kind of information in such a perfect manner of writing? I've a presentation next week, and I am on the look for such information.

JefF
July 12, 2012 at 12:38 pm

Of course the poll shows that...more people than not get the benefit!!!!!! Let his ox get gored, not mine!!!!! Did you really think that people would stand up and say let us start paying down our debt by everyone paying more?????? Since the Democrats say the Bash tax cuts was mostly given to the top 1% let all the tax cuts expire and the most will be given back by the 1%...but of course that does not work for the 99%, unless they get to keep "Theirs". It is really all about Income re-distribution....I work hard (Maybe) and you work hard but I want you to give me some of your money!!!!!! They are all full of it and are in the business of politics...the biggest Ponzi scheme ever!!!!!!

publius
July 11, 2012 at 11:13 am

Hey--get off the political bandwagon--its only for a one year extension--wowsy doosey! Get real with real tax reform--the Repubs want it permanently extended for ALL Americans--Big Difference!! Read the fine print!!!