>Yes, they are. You are forgetting about the EITC phaseout, which would still be at 20% for a single Mom with two kids at $25,000. She would face:
EITC Phaseout- 20%
Income Tax- 15%
FICA (inc. empl side) 15%
------------------------------
Total 50%
>
For anyone with more than one claimed child, the phaseout is at $31,152, according to IRS website.
Still, isn't W doing fuzzy math? Phasing out EITC when you make $25,000 (or 31K) isn't the same as adding 20% to your marginal tax rate above that. Even with EITC, you are not exempt from taxation: it simply lowers your paid taxes. It might lower your actual rate by 20%, but it can't lower your marginal rate that much. So adding 20% to the marginal rate above that is a pretty un-deft sleight of hand. (BTW, your credit is based on adjusted gross income, which, from what I can tell, is a bit more complicated than simply taking 20% off the top of your tax bill anyway.)
Christian