yeah, thats my questions, are they (congress) really going to do both AMT and top rate, or is it just a shell game of only changing the top rate.
Well, it's like this.
Right now, if nothing passes, the AMT fix wont happen and middle and high income brackets will all pay more
If the AMT fix is passed in the form it always have been (an adjustment in line with the bracket changes then everyone will likely pay the same as this year, (if rates are kept the same) or the higher brackets will pay more (if the rates rise).
If rates rise, because nothing is passed, everyone pays more.
If Obama gets his way, the upper brackets pay more regardless of AMT changes
If deductions are phased out, but rates remain the same (a GOP way of increasing revenue without changing rates), the upper brackets will pay more.
Basically, in 100% of the scenarios, the upper brackets pay more.
But Brimic is correct, we actually have a MORE progressive system of taxation in terms of fraction of govt revenue paid by income brackets, and the "bush tax cuts" actually INCREASED not only the total revenue, but the share of revenue paid by the upper brackets AND they actually paid MORE in terms of percentage of income. The current system dis-incentivizes entrepreneurship and economic growth.
Also, the estate tax change that will happen will seriously hurt a large number of small businesses and farms.