35% Tax Bracket

[buzzardbreath]

Has anyone noticed the 35% tax bracket for S status?

WOW! I think the govt was so enamored with the political effect of the $400,000 bracket they just
didn't bother thinking about anything else.

For my clients (and yours) who make big money, here it is:

33% bracket stops at $398,349
35% bracket stops at $399,999

In other words the bracket is only $1650 wide. 2014 is indexed for inflation, but the bracket still
only accommodates $1650.

Why bother?

[DaveinTexas]

Makes perfect sense to me

They are trying to push more of those 33/35er's into the new 39.6% for two reasons. One, obviously, is to extract more income taxes, but the 2nd reason is to push more of these folks into the bracket that requires them to pay the NII tax on their investment income. It's genius.

Someone has to pay for this Obamacare and that is the purpose of this new NII tax. You see the Government's job is to create a program (problem), then operate it minimally (poorly), create a tax (revenue source) to fund the program (problem) so they can justify the funds (our money) used to create the program (problem).

It boggles the mind.