Those Barely in Top Brackets Brace for a Hit

[WestVirginiaRebel]

Wall Street Journal:

Most of the country's top earners just barely make it into the highest tax brackets—and no matter what happens in Washington's budget negotiations, they are preparing for a hit.

Households earning between $200,000 and $500,000 a year have been in and out of the cross hairs all year. As of this week, the White House is again seeking to preserve tax rates for income under $250,000 while allowing everything above to reset to Clinton-era levels.

The prospect of a tax hit has been met with either quiet resignation or loud griping as this group finds itself lumped into the same category as millionaires and billionaires.

"The core of it, like we're the ultrarich—that just sticks in my craw," said Geoff Thompson, of New York's Westchester County, who runs a marketing firm with his wife, earning together between $300,000 and $350,000 a year. "I don't know what it's like in that rarefied atmosphere where people are making multiple millions."

Mr. Thompson's household is one of nearly five million that earn between $200,000 and $500,000 annually. They make up the largest subset of the top 2% of earners. Fewer than 1.2 million households earn more than $500,000.

________

 

But they're "the wealthy" in the eyes of the takers...

[Draggingtree]

The Wall Street Journal::

December 28, 2012, 5:46 p.m. ET

Baby, You're a Rich Man

You don't have to be Warren Buffett to be considered wealthy. It all depends on who is setting the bar. Here's why it matters for your taxes, investment options and college aid—and what you can do about it.

By LAURA SAUNDERS

Who's rich, anyway?

Congress and President Barack Obama are struggling with that question as they wrangle over how to avoid the "fiscal cliff." If they can't reach a decision, tax rates will increase sharply for most Americans—both rich and not—and draconian spending cuts of $110 billion will kick in.

It isn't as easy as you might think to determine who is rich. There are many different yardsticks devised by Uncle Sam, banks, brokerage firms and other institutions. The thresholds—as low as $44,000 for people receiving Social Security benefits—matter because they determine the taxes you owe, the college aid you receive,

[pollyannaish]

Well they are wealthy, but since they earn it good for them! I wish I was one of them and I do not want them punished for being successful!