Business Income to Shoulder Over a Third of Tax Increase on Top Earners September 10, 2010 TF Staff TF Staff Advocates of allowing the top two federal income tax rates to expire claim that only 2 or 3 percent of businesses would be affected, but a new Tax Foundation report shows that more than one-third of the revenue from an increase in the top two rates would come from business income. About 39 percent of the $630 billion tax increase on high-income taxpayers (defined by President Obama as individuals earning more than $200,000 and married couples earning more than $250,000) in 2011 would come from business income. This amounts to an extra $246 billion in taxes on business income over 10 years. For more information, see Tax Foundation Special Report, No. 185, “Over One-Third of New Tax Increases to Come from Business Income” or visit the Tax Foundation’s FAQ on the Bush-Era Tax Cuts. To see how the fate of the Bush-era tax cuts would impact your 2011 federal income tax liability, visit the Tax Foundation’s interactive calculator at www.mytaxburden.org. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Center for Federal Tax Policy Center for Legal Reform Individual and Consumption Taxes Individual Income and Payroll Taxes Tags Bush Tax Cuts Expiring Provisions of the 2001 and 2003 Tax Packages