Clarifying an important tax point

At the start of last week Greg Sargent made an important point on taxes that bears repeating, since many people (apparently including many journalists) seem unclear on it:

The proposal backed by President Obama and most Democrats in Congress would renew the Bush income tax cuts not just on all persons making under $250,000 or so, but on all taxable income below that level, no matter how much a person makes.

That is, if you make just over $250,000, your taxes would barely go up at all, since there would be only a tiny increase in your marginal tax rate and it would apply only to the amount of taxable income above that level. And even if you make tens of millions a year, you would still pay less under their proposal than if the tax cuts are simply allowed to expire.

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