Congress and President Obama can’t agree on much, but they agree on this: Congress must preserve what they persist in calling middle-class tax cuts. As most TaxVox readers know by now, the red lines in this debate are for singles making about $200,000 or less and couples filing jointly making $250,000 or less.
By this standard (invented by Obama but embraced more or less by Democrats and Republicans) if you make more than these limits, you are rich. Make less, and you are just a regular working stiff trying to hang on ’til your next paycheck.
Except this is fantasy.
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