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Sure I'll have another Crown Royal. Make it a double. The rich guy is buying.

July 30, 2009

So the top 1% of taxpayers now pay more federal income taxes than the bottom 95%. That's before they get hit with a big honking tax increase in 2011, when the top rate goes from 35% to 39.6% - or maybe 45%.

But Congress isn't done yet, reports Tax Analysts ($link):

[Congresscritter Mike] Ross also said the new agreement would exempt all businesses with annual payrolls of less than $500,000 from the requirement to provide health insurance or pay a penalty payroll tax. The penalty rate would then phase in and reach full strength for businesses with $750,000 or more in annual payroll. Ross said the provision would exempt more than 80 percent of small businesses from the mandate.

Yep, it will exempt all the Amway salesmen, part-time handymen, and solo practitioner CPAs. Only businesses that have managed to actually grow and hire some people will get punished. What could possibly go wrong?

UPDATE, 7/31: The TaxProf has more.