If you pay attention to the news at all you've probably heard the back and forth over the expiring Bush tax cuts. What most are squabbling over are the cuts for the top richest 2%. For them, their federal taxes would return to the rate of 39.6% up from the current 35%. But what about the other 98% of the population? USA Today
has put together a nice Q&A piece, with some infographics to help explain what the expiring tax cuts mean for the rest of us. In short, President Obama has proposed to maintain the current tax rates for those making under $250,000 per year. The second to highest tax bracket would go from the current 33% tax rate back to 36%.
As this post is being written, word out of Washington is that Senate leaders have canceled plans to try to extend a broad array of tax cuts until after the November elections. In the meantime, checkout the article from USA Today
and mouse over their graphic to see where you finances fall in this debate.