Stating the obvious

Our president's budget plan is clear - tax hikes are on the way. The current economic malaise will only postpone the inevitable. If the economy improves enough for 2011 those with the targets on their backs are the high wage earners. For 2011, expect the reinstatement of the 36% and 39.6% income tax brackets for married filers making in excess of $250,000 and singles making at least $200,000. Since the brackets are based on taxable income and not earnings, Obama is just substituting 36% and 39.6% tax rates for the current 33% and 35% tax brackets. Lower brackets will not be changed.
In addition, again effective in 2011, expect a big hit to those taxpayers with capital gains and dividends. The current 15% maximum rate would rise to 20% for any taxpayer in the 28% tax bracket and above.
And expect continued phaseouts of itemized deductions, personal exemptions et al for taxpayers in the highest brackets.
Don't you love the redistribution that is occurring.....