You would have to be living under a rock these days to be unaware of the massive spending coming out of Washington D.C. these days. The Associated Press reported today that President Obama's deficit estimates may be significantly lower than reality. As reported in today's Ft. Lauderdale Sun-Sentinal:
As noted in the article, one method to address deficits is to raise taxes. Below is a table that I came across that summarizes the maximum income tax rates in the U.S. since the enactment of the income tax. Younger readers who were not taxpayers before 1987 may find it an eye opener. All readers may want to take a look at the jump in maximum rates from 1932 to 1933 – a time period that also experienced a substantial expansion in federal spending in response to an economic crisis and a President who was not afraid to raise taxes:
At a minimum, one should expect rates to revert to pre-Bush levels, per the scheduled expiration of the Bush tax cuts in 2011. However, given the above history of maximum tax rates, substantially higher rates may ensue.