the President will accept top marginal rates being hiked up just shy
of the Clinton rates so long as a heap of deduction limits are included.
Number of the Day: “37 or 38 percent.” That’s the top marginal income tax rate President Obama would accept if Republicans offered additional increases in tax revenues, according to a story by Lori Montgomery and Zachary A. Goldfarb in The Washington Post. The President had previously suggested that he wanted the rate to return to 39.6 percent, where it was during the Clinton administration. Possible means to increase tax revenues without hiking rates beyond 37-38 percent include eliminating or shrinking tax deduction categories, capping the total amount of deductions, or replacing deductions with credits.