Tuesday, March 3, 2009

Upper-Income Taxpayers Look for Ways to Sidestep Obama Tax-Hike Plan. And: Where the $200,000+ Crowd Lives

From ABC:
President Barack Obama's tax proposal – which promises to increase taxes for those families with incomes of $250,000 or more -- has some Americans brainstorming ways to decrease their pay, even if it's just by a dollar.

A 63-year-old attorney based in Lafayette, La., who asked not to be named, told ABCNews.com that she plans to cut back on her business to get her annual incomeunder the quarter million mark should the Obama tax plan be passed by Congress and become law.

So far, Obama's tax plan is being looked at skeptically by both Democrats and Republicans and therefore may not pass at all.

"We are going to try to figure out how to make our income $249,999.00," she said.

"We have to find a way out where we can make just what we need to just under the line so we can benefit from Obama's tax plan," she added. "Why kill yourself working if you're going to give it all away to people who aren't working as hard?">>>MORE

And from CNBC via Yahoo:

The White House's budget for fiscal year 2010 calls for tax hikes on wealthy Americans. In this case, that means couples making over $250,000 a year and individuals $200,000 a year. Under the budget plan, these households (about 3 percent of the total) would experience tax increases of $318 billion over the next 10 years. Here's a look at the states that will be most affected by the tax hike and how they voted in the last presidential election.

1. District of Columbia

% of Households Earning $200K+: 8.4%
Total Households: 251,039
Median Income: $50,318
Households Earning $200K+: 21,194

Election Results:
Obama: 93%
McCain: 7%

2. Connecticut

% of Households Earning $200K+: 8.0%
Total Households: 1,320,714
Median Income: $64,158
Households Earning $200K+: 105,433

Election Results:

Obama: 61%
McCain: 38%

3. New Jersey

% of Households Earning $200K+: 7.5%
Total Households: 3,149,910
Median Income: $65,249
Households Earning $200K+: 235,278

Election Results:
Obama: 57%
McCain: 42%

4. Maryland

% of Households Earning $200K+: 6.9%
Total Households: 2,082,458
Median Income: $65,552
Households Earning $200K+: 142,694

Election Results:
Obama: 62%
McCain: 37%

5. (Tie) Massachusetts

% of Households Earning $200K+: 6.2%
Total Households: 2,449,133
Households Earning $200K+: 152,348
Median Income: $57,681

Election Results:
Obama: 62%
McCain: 36%

5. (Tie) California

% of Households Earning $200K+: 6.2%
Total Households: 12,200,672
Households Earning $200K+: 757,411
Median Income: $56,311