Kevin’s Handy Tax Table for Innumerate Rich People

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Dave Weigel complains today that too many rich people have no idea how income taxes work. They’ve heard that Obama wants to raise tax rates on people who make more than $250,000, so they’re working on ways to keep their income right at $249,000. After all, if they go over the threshold, they’d suddenly have to pay the higher rate, and it would be a net loss.

This isn’t true, of course. Obama is only proposing to raise tax rates on income over $250,000, so if your income goes up to $251,000, you only pay the higher rate on the extra $1,000. The tax bill on your first $250,000 stays exactly the same.

But that’s hard to explain, and we’re all about solutions here, not petty griping. So I have the answer: an EZ-to-Read table that compares total taxes paid under the old Bush rates and the proposed Obama rates. It starts at $241,900 because that’s $250,000 minus the standard deduction, and it’s for married couples filing jointly.

Example: under the current Bush tax rates, a couple making $300,000 pays $75,802, or 25.27% of their total income. Under Obama’s plan, the rate goes up on the amount over $241,900, so they pay a whopping $2,000 more, or 25.85% of total income. Millionaires will pay $32,000 more. Raw data here. Share this with all your rich friends!

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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