Boehner plan would bring top income tax rate to 39.6 percent: source

WASHINGTON Sun Dec 16, 2012 5:04pm EST

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WASHINGTON (Reuters) - House of Representatives Speaker John Boehner's latest "fiscal cliff" proposal to President Barack Obama would see the top income tax rates rise to 39.6 percent from 36 percent for those with net incomes above $1 million a year, according to a source familiar with the talks.

The source, who asked not to be identified, emphasized that the income tax rate increase would be in exchange for "significant entitlement reforms/spending cuts." Entitlement programs include Medicare and Medicaid healthcare for the elderly and poor and Social Security retirement benefits.

The White House has not accepted Boehner's proposal, according to another source. Under current law, the top tax rate is scheduled to rise to 39.6 percent on January 1, unless Congress extends the current 36 percent, as Republicans had been urging.

(Reporting By Richard Cowan; editing by Philip Barbara)

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Comments (2)
cyke1 wrote:
Wonder why rich keep their money off shore, when you gotta pay 35%+ on it.

Dec 16, 2012 5:20pm EST  --  Report as abuse
wadephillip wrote:
Raising the tax rates will kill small business, especially with the “affordable care act”!!!!!! I am involved in 3 businesses. Make about 800000 a year. I already pay around 250000$ a year in taxes! I emply 80 people who make very good money!Everyone should pay something in taxes. Factor in the people who pay NO taxes and get a income tax credit and get several thousand dollars in a refund check!!!!! Repeat-They paid NO taxes!!! I am the one taking the risks and signing the bank notes. I will be laying off employees thaks to Obamacare and the tax hike!!! May be forced to just close my business. Lost 30000 dollars last moth due to all of these new regulations. I hate it for my 80 employees!

Dec 16, 2012 5:50pm EST  --  Report as abuse
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