Who Pays for The Economic Stimulus Rebate Package of 2009?

Who pays for the economic stimulus rebate package?

 

This high income group of taxpayers could see a large increase in their taxes which would cost them thousands of dollars.

If you are high income, this plan could affect you in the following ways:

1. Increase in income tax. They are currently set at 33-35% with a proposed increase to 36-39%. If you are subject to the AMT (Alternative Minimum Tax) then you should not notice an increase since the AMT is usually higher.

2. Those with income above $250,000.00 would see an increase in Social Security tax on their payroll checks. They could potentially pay up to $3,100.00 more annually in Social Security tax.

3. Long-term capital gains could be taxed at up to 25%. Currently there is a limit of 15% on these gains which is set to expire in 2011.

4. All estate tax rules would remain in effect with a top rate of 45%.

The main idea of this plan is to put money back in to the middle class. The middle class could potentially see huge tax breaks from unemployment benefits to early withdrawals on retirement accounts. The Child tax credit is likely to see an increase from this economic stimulus rebate package as well.