Obama Tax Plan - is $250,000 cutoff figure net or gross income?

[MgtPA]

My husband is running an Obama phone bank and says that the most frequently asked question from undecided voters is whether the statement "income less than $250,000.00" applies to gross or net income for individuals and small businesses. Does anyone here know where I find the answer?

Thanks much.

[CreekDog]

1. This makes no sense

the most common question is about the 250k income level?

your husband has to ask you to find this information out. shouldn't he consult the campaign since he is apparently WORKING for it.

[tekisui]

12. I have never heard that question phonebanking.

They must live in a very affluent neighborhood.
:eyes:

[MgtPA]

20. You betcha! Elementary school teachers make 6 figures. McMansions everywhere.

[Zynx]

2. Only net income is taxed. The government doesn't tax revenue.

[WCGreen]

21. There you have it...

[1corona4u]

3. Perhaps this will help

I can't get the image to work, but there is a chart on the net.

Also, most company owners pay themselves. It would be the amount filed on their tax returns.

[Abacus]

4. I was wondering about this too

kick

[bunnies]

5. Where is he phonebanking? Beverly Hills?

I'd like to know where in this country the majority of people make ++ $250,000. I'm obviously living in the wrong state.

[MgtPA]

10. Bucks County, Pa. The township where he's phone banking serves as a bedroom...

...community for Princeton and NYC, and typically votes Republican. Dual incomes of $250K are common; i.e., a senior software engineer drawing $125K isn't unheard of. Note I didn't say the majority of the residents made $250K; I said the most frequently asked question the phone bankers were hearing from undecided voters addressed the $250K issue.

[ecstatic]

16. I'm not surprised because that's the issue McShame is spouting the most lies about

Obama has a plan for small businesses online, but I kind of wish he'd be a little more specific in it (as far as numbers).

The link to the pdf file is: http://www.barackobama.com/pdf/SmallBusinessFINAL.pdf

[CreekDog]

17. Tell your husband to ask the campaign, not a bunch of DU'ers (no offense)

:eyes:

[MgtPA]

19. None taken :) He just mentioned it this morning on his way out the door...

...for work. The phone bankers were hearing the question a lot last night, and the campaign hadn't addressed the issue with the volunteers with the degree of specificity necessary to answer the question. He asked me to check Obama's website for him (since I'm home during the day). I didn't find the answer there, so I posted the question here.

[Aloha Spirit]

6. For individuals, refers to tax bracket. For small businesses, there are several tax BREAKS...

Here's a good place to look (pdf)
http://www.barackobama.com/pdf/taxes/Factsheet_Tax_Plan_FINAL.pdf

[flpoljunkie]

7. Income usually means AGI--adjusted gross income from the bottom of your 1040.

From Obama's tax plan:

Families making more than $250,000 will pay either the same or lower tax rates than they paid in
the 1990s. Obama will ask the wealthiest 2% of families to give back a portion of the taxes they have
received over the past eight years to ensure we are restoring fairness and returning to fiscal
responsibility. But no family will pay higher tax rates than they would have paid in the 1990s. In fact,
dividend rates would be 39 percent lower than what President Bush proposed in his 2001 tax cut.

http://www.barackobama.com/taxes/

[flpoljunkie]

15. CTJ found 'earlier this year that only 2.1% of taxpayers have AGI above $250,000.'

Earlier this year CTJ found that only 2.1 percent of taxpayers have adjusted gross income (AGI) above $250,000 and only 3.2 percent have AGI over $200,000. Senator McCain has been telling crowds that "Senator Obama will raise your taxes." Unless Senator McCain is addressing only the richest 2 or 3 percent of Americans (which seems an unlikely campaign strategy) it's hard to avoid the conclusion that McCain has decided to mislead the public. In fact, it's so hard to avoid this conclusion that even Fox News has begun to accept it.

http://www.ctj.org/taxjusticedigest/presidential-race/

[Bread and Circus]

8. It's probably "Taxable Income" which is net income less deductions

[DuaneBidoux]

9. always gross

[BzaDem]

11. NET income (after deductions). Government does not tax revenue.

[spooky3]

24. No, but there are other cutoffs that people are asking about:

Roughly:

Revenue - costs = Gross income
Gross income - allowable adjustments, such as retirement plan contributions, moving expenses = Adjusted gross income
Adjusted gross income - exemptions (for dependents) and itemized deductions (e.g., home mortgage, state and local income taxes) or standard deduction = Taxable income

These numbers can be very different if you have a lot of adjustments and deductions. You can start with $250K and end up with $150K, and pay a lot less in taxes.

[GreenEyedLefty]

13. I'm thinking adjusted gross income

Chances are, most small businesses will not have any increases.

Besides, how many small business make over $250k???

[kick-ass-bob]

18. Note that AGI is made up of business profits

and not revenues.

[Deep13]

14. Probably AGI, adjusted gross income.

That is groos minus personal exemptions. For a self-employed person, it is profits with business expenses deducted.

[WallStreetNobody]

22. It is AGI (Adjusted Gross Income) or net income

Technically it is even lower than net income, AGI is always lower or at most equal to net income. For the typical person with a $250,000 AGI (at which point they would face higher taxes) their actual income is probably well over $300,000.

[MgtPA]

23. Thanks, everyone, for all your help! I'll show my husband this thread and suggest he contact...

...the campaign for the individual and small business talking points.

Thanks again!