The legislation averting the fiscal cliff raises the top income tax rate from 35 percent to 39.6 percent.
The Wall Street Journal reports that with the phase-out of certain deductions for high-income earners, the top rate for 2013 is more like 41 percent.
The Journal adds in the rest of the tax liabilities:
"Add the ObamaCare surtaxes on investment income (3.8 percent) and Medicare (0.9 percent), as well as the current Medicare tax of 1.45 percent (employee share), and the top marginal tax rate on a dollar of investment income from a bank savings account or money-market account will be about 46 percent."
President Obama has said repeatedly that higher-income Americans should pay more taxes. The higher tax rate in the fiscal cliff plan will take an estimated $620 billion out of the private sector over the next 10 years and turn it over to the federal government.
Unfurl the "Mission Accomplished" banner at the White House.
The higher tax rate achieves a campaign promise made by the President, and supported by most Democrats, but other than that, what does it really do?
There is no guarantee the additional revenue will go toward deficit reduction, and even if it did, $620 billion falls well short of covering the annual deficit (about $1 trillion a year) and fails to make a dent in debt, which is at $16.4 trillion and growing.
In fact, the fiscal cliff plan includes over $300 billion in new spending over the next decade.
Only in Washington can negotiations over ways to reduce the deficit end with a 200-plus page bill that actually spends more money and adds to the debt.
Perhaps this exercise, more than any other, explains why the federal government has bankrupted the country.