May I throw the DUH flag on all the whining about the $250k top bracket? I am going to go out on a limb and suggest that $500k is a number all sides will live with for the 39% bracket.

First, let’s talk history: That top bracket dates back to 1993, and if we inflation adjust $250k of back to 1993, its closer to $400k. Keep that in mind.

Next, if you have ever bought a used car, a Turkish rug, or engaged in any form of haggling, you know that you NEVER start with the actual number where you want to end up.

Instead, you use a number that is your opening gambit. It’s a bid, a feint, a frame to the negotiations. Its where we start, not where we will end up. In terms of the top bracket, I doubt it will be either $250k or $1m.

With $500k, everyone gets a little something to take back to their supporters and declare victory.

The GOP gets to say the held the line on taxes for 95+% of the country, the Dems get to say they finally made the wealthy pay their share, and all the politicians are happy.


My guess is the top bracket settles out at about $500,000 – What say ye?

Category: Politics, Taxes and Policy

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66 Responses to “Open Thread: Where Will the Top Tax Bracket End Up?”