5 Percent Millionaire Tax Added to Obama Jobs Bill
Millionaires in the United States could be paying a new tax, if Senate Democrats have their way.
Senate Majority Leader Harry Reid, D-Nevada, said he is rewriting parts of President Barack Obama’s jobs bill to include an additional five percent tax for those who bring in more than $1 million in income. But the so-called millionaire tax will have to get past Republicans first. Reid said he would put the bill to the floor next week.
The tax is only an addition, one that Reid says will completely pay the cost of the jobs bill, and Obama’s original proposals that would give more money to infrastructure projects and cut payroll taxes are still a go.
If the bill passes, a millionaire tax would go into effect Jan. 1, 2012.
“Drawing the line at a million dollars is the right thing to do,” said Sen. Chuck Schumer, D-N.Y.
The new 5 percent tax would be applied to adjusted gross income above $1 million, including income from capital gains and dividends. The top tax rate on earned income is currently 35 percent. The top capital gains tax rate is 15 percent.