High-Income Taxpayers Should Maximize Charitable Contributions, Itemized Deductions in 2010

The latest post on the Tax Policy Blog is High-Income Taxpayers Should Maximize Charitable Contributions, Itemized Deductions in 2010. It is the latest in a series that the Tax Foundation has written about the expiration of the Bush tax cuts. This post is about the likely expiration of  PEP and Pease, popular names for the personal exemption phase-out and a similar phase-out of itemized deductions for higher income filers. The post notes:

PEP and Pease have created significant problems, raising marginal tax rates and adding to tax complexity. In some cases, PEP and Pease push the marginal tax rate up substantially. Next year, under President Obama's budget, a married couple filing jointly with combined AGI of $254,550 would pay a 28 percent rate without PEP and Pease, but a 30.5 percent rate with PEP and Pease.

For more details, read the post, or check out the Tax Policy Foundation or the Tax Policy Blog.