Often, a law changes the marginal rate for one group and not others.
But flat-tax opponents have always countered that it is unjust not to have higher marginal rates for the rich.
Under legislation enacted last December, the Bush-era tax cuts were extended for all Americans through 2012 with a top marginal rate for individuals of 35 percent.
Another is Mr Bush's tax cutting: last year he cut marginal rates for individuals; this year's stimulus package cut taxes for many firms.
The marginal rate for individuals earning more than $400,000 and couples earning more than $450,000 would rise from 35% to its pre-2001 rate of 39.6%, while deductions would be curbed for some people earning as little as $250,000.
"I would think that the kinds of tax changes we recommended and that Governor Bush recommended, especially in terms of reducing marginal rates, for example, are in fact exactly what needs to be done with respect to providing the kind of stimulus to ensure the resumption of long-term economic growth," Mr. Cheney said.
In line with a campaign promise by François Hollande, the Socialist president, to tax "work and capital" equally, the budget taxes all financial income whether from interest, dividends or capital gains—at top marginal rates for higher-band earners.In this section Who will be Italy's next prime minister?
The AMT is far from perfect its personal exemption is not indexed; quirks in its structure can mean high marginal rates for some taxpayers; and it allows some needless deductions but it is less riddled with loopholes than the current income tax.
When you compare raising the marginal rates for roughly 2 million Americans to phasing out health insurance exclusions that would affect 150 million Americans — even if some reform should be done — I don't think it's a close call substantively or politically.
"I come from the school of thought that by cutting marginal rates for everybody who pays taxes is a good way to help ease the pain of what may be an economic slowdown," Mr. Bush told the Republicans, brushing past Alan Greenspan's warning last week that by the time any tax cut would be passed and take effect, it would probably be too late to correct the current slowdown.
