December 7, 2010. Thanks Republicans, Again.

From the New York Times:


The wealthiest Americans will also reap tax savings from the proposal’s plan to keep the cap on dividend and capital gains taxes at 15 percent, well below the highest rates on ordinary income. And negotiators have agreed that the estimated $900 billion cost of the cuts will simply be added to the deficit — not covered by reductions in spending or increases in other taxes. That is good news for hedge fund managers and private equity investors, who appear to have withstood an effort to get them to pay more by eliminating a quirk in the tax code that allows most of their income to be taxed at just 15 percent.


In fact, the only groups likely to face a tax increase are those near the bottom of the income scale — individuals who make less than $20,000 and families with earnings below $40,000.


“It’s going to look like the rich are getting richer again,” said Anne Mathias, an analyst for MF Global Inc.


"The marginal tax rate on high incomes will also remain unchanged. The top brackets had been scheduled to increase to 36 percent and 39.6 percent, from 33 percent and 35 percent. 


Under Mr. Obama’s failed proposal, which would have raised the rates on income over $250,000 for families and $200,000 for individuals, the taxpayers at the top 1 percent of the income scale — those with incomes above $564,000 — would have received an average tax break of $28,000. Under the agreement reached with Republicans, the top 1 percent will receive breaks of about $70,000.


Simply:

• If you are an individual that makes under $20K or a family that makes under $40K, your taxes are going up
• If you're a hedge fund manager (making millions already), you get to continue to cheat the program and pay a 15% capital gains tax instead of your proper income tax bracket of 33-36%
• Those making over $200K a year as an individual, or $250K as a family, your taxes aren't going up to the pre-Bush [Clinton Administration] tax bracket percentages of 36% and 39.6%
• All in all adding $900 billion to the deficit, the thing that Republicans kept preaching they would not do from this recent election campaigning [we need to balance the budget, blah, blah blah rhetoric]

Dandy.