It is quite simple, it will cost them less.

What, you say?

We all pay taxes on graduated amounts of income.  For example,

If I make $300,000 (adjusted income) and the tax bracket starts at $250,000, than I pay that rate only on the $50,000 above that bracket floor.  I pay taxes on the range of tax rates based on the lower bracket.  So essentially I currently pay:

• 10% on the first 17.000, $1740 tax
• 15% on 17,400-70700, $7995 tax
• 25% on 7,0700-142700, $18,000 tax
• 28% on 142,700-217,450, $20,930 tax
• 33% on 217,450-300,000, $27,242 tax
• (note that this income level does not even reach the highest bracket, 36% for over 388,350)

For a total of $75,907 in income taxes before deductions or credits.

So if the highest tax rate is set at 39.6% starting at 250,000 and others remain the same  (Obama plan) then here is what I would pay:

• 10% on the first 17.000, $1740 tax
• 15% on 17,400-70700, $7995 tax
• 25% on 7,0700-142700, $18,000 tax
• 28% on 142,700-217,450, $20,930 tax
• 33% on 217,450-250,000, $11,718 tax
• 39.6% on 250,000-300,000, $19,800 tax

For a total of $79,207 in income taxes before deductions or credits.

But if nothing is done and all taxes are restored to 2001 levels, the so called "fiscal cliff" I'd pay:

• 15% on the first 17.000, $2610 tax
• 15% on 17,400-70700, $7995 tax
• 25% on 7,0700-142700, $20,160 tax
• 28% on 142,700-217,450, $23,173 tax
• 33% on 217,450-250,000, $10,974 tax
• 39.6% on 250,000-300,000, $19,800 tax

For a total of $85,456.

To recap, current is $75,907, Obama's ask is $79,207, and fiscal cliff would be $85,456.  Note that the fiscal cliff is higher since I'd pay in increased rates for all brackets, not just above $250,000.

So if you were making the choice between the fiscal cliff, which must happen if no agreement is reached and a compromise to tax 39.5% after $250K, an agreement than can be reached, which is in your best interests?

But over if we go over the fiscal cliff, Congress would act to reverse it, right?  Let's think about that a minute.

Everyone's taxes will go up.  The question then is for whom do we lower taxes for "relief?"  The Democrats will want to do it for everyone in all but the highest tax bracket, and (if keeping with past behaviour) the Republicans will want to give the top 2% a break.  We would be back to the same lack of consensus that got us into the tax rise in the first place.  If they can't make a compromise while Damocles's Sword is hanging over their head, why would they after it has fallen?

It seem clear that if an agreement is reached, the top earners will pay a bit more, and if not reached they (and everyone else) will pay a lot more.  As we look at the lowest income tax rates we have seen for over 50 years and our deficit and debt problems, a tax-based revenue increase is a healthy part of defecit reduction, along with significant spending cuts, to get the balance into reasonable proportion.

So again, if you are part of "the 2%," what is in your best interests?