My guy Pete Davis of Davis Capital Ideas on why taxes are going up, all of which may explain why Obama waffled yesterday on keeping the 2001 and 2003 tax cuts until at least their expiration at the end of 2010): "With the deficit reaching $1 trillion ... there will be pressure to raise revenue. If a permanent fix to or repeal of the Alternative Minimum Tax is to happen, that will likely be "paid for" with a top rate tax increase. AMT repeal would require a 4%-point increase from the current 35% top rate."
Me: This plays into the possibility of a "millionaire's" surtax, which would be left in place when the 2001, 2003 cuts expire. That would push the top rate to 44 percent -- higher than the top rate under Bill Clinton.
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