Breaking down Bam’s tax plan
Skinny: Allows the 2001 and 2003 tax cuts on higher incomes to expire, pegging the top tax rate at 39.6% for 2013 and returns the estate tax to 2009 levels of 45% on estates in excess of $3.5 million.
President: “We can't afford these special lower rates for the wealthy -- rates, by the way, that were meant to be temporary … We can't afford them when we're running these big deficits.
Critics: “Some clients will feel like they have worked very hard during their lifetime and this is like a penalty tax for their success,” said Rob Lineberger, principal of Diversified Trust, a wealth management firm.
Deficit reduction: $866 billion over 10 years.
Chance of passage: Medium