On 'millionaire' range, president switches tag
President Barack Obama's demand that “millionaires and billionaires” be taxed at a higher level is translating into a tax hike for those earning far less. In his proposals, Obama has defined those terms to include households with an annual income above $250,000.
It seems Obama's “millionaires' bracket” includes families with just one-fourth that income. But in all fairness, Obama isn't the first policymaker to use that bait-and-switch tactic. Several states' top income-tax brackets also include people with thoroughly middle-class earnings — or lower.
The Tax Foundation notes those earning over $200,000 in Hawaii land in a top bracket with an 11-percent tax rate. Oregon's top rate of 9.9 percent applies around $125,000. In Iowa, those earning over $66,105 face an 8.98-percent tax rate, while those earning more than $20,350 in Maine are in the top 8.5-percent tax bracket. This year, California's second bracket applied a 9.3 percent rate to income of just $48,029, while Oregon's second tax tier was a 9-percent rate for income as low as $7,750.