The Bush tax cuts the people would keep

Officials in the nation’s capital are in a battle about what to do about the Bush tax cuts, which are set to expire at the end of the year. Republicans want to extend all rates at current levels, while Democrats want the rich to pay higher taxes, which would likely be accomplished by raising rates for the top two income tax brackets. According to New York Magazine, every dollar of income up to $250,000 will be taxed at the rate it is now.

Democrats and Republicans agree that the lower income tax brackets should not be changed and everyone, including the wealthy, will continued to enjoy the current low rates on income earned up to at least $250,000. Higher taxes will be paid only on income earned above $250,000. As an example, the top tax rate might be moved from 35 percent to 39.6 percent, the same level it was during the Clinton administration, when America had a surplus in its budget.