One small point: at the income level where the 39.6% bracket applies, you are almost certainly itemizing deductions (especially if you live in a state with an income tax). In that case, every dollar of state tax paid is deductible for federal purposes, measurably lowering the effective combined rate.
There's a good argument for eliminating that deduction, as it effectively grants high tax states and localities a subsidy from the residents of low tax states and localities.
That being said, the deduction doesn't take away the full force of the tax. Some quick math tells me that 40% federal + 10% state - the deduction is a 46% marginal rate.
Medicare/Medicaid FICA has been uncapped since the '90's, and adds 2.9% or 1.45%, depending on how you want to count the employer "contribution". Next year for top earners it goes up another .9% to help pay for ACA.
So I don't think claiming marginal income rates are approaching 50% at the high end is unfair. Does anyone doubt that a popular "fix" for Social Security will be to uncap that tax as well? Then we'd be talking 60%+ if you discount the accounting fiction of the employer contribution. Or are self-employed.
