Democrats propose new tax brackets for millionaires, billionaires

[Shallah Kali]

http://www.cbsnews.com/8301-503544_162-20043928-503544.html

"This isn't about punishment or revenge. It's about fairness," Schakowsky said. "It's about avoiding budget cuts that harm middle class families and those who aspire to it. We can choose to cut education, job creation and health care, or we can choose to ask those who can contribute more to do so."

Currently, the top tax bracket begins at an income of $373,000 per year; income above that level is taxed at 35 percent. Schakowsky contends this fails to distinguish between the "well off" and the superrich, such as a group of hedge fund managers whose average income last year topped $1 billion.

Schakowsky's bill, called the Fairness in Taxation Act, would tax income between $1 million and $10 million at a rate of 45 percent. Income between $10 and $20 million would be taxed at a rate of 46 percent, and income between $20 and $100 million would be taxed at 47 percent.

Income between $100 million and $1 billion would be taxed at a rate of 48 percent, and income over $1 billion would be taxed at 49 percent. For those making over $1 million a year, capital gains and dividends would also be taxed as income.

Schakowsky Introduces Bill to Tax Millionaires and Billionaires
http://schakowsky.house.gov/index.php?option=com_content&view=article&id=2877:schakowsky-introduces-bill-to-tax-millionaires-and-billionaires&catid=22:2011-press-releases

“In the United States today, the richest 1% owns 34 % of our nation’s wealth – that’s more than the entire bottom 90%, who own just 29% of the country’s wealth,” said Rep. Schakowsky. “And the top one-hundredth of 1% now makes an average of $27 million per household per year. The average income for the bottom 90% of Americans? $31,244. It’s time for millionaires and billionaires to pay their fair share, which is why I introduced the Fairness in Taxation Act. This isn’t about punishment or revenge. It’s about fairness. It’s about avoiding budget cuts that harm middle class families and those who aspire to it. We can choose to cut education, job creation and health care, or we can choose to ask those who can contribute more to do so.”


The current top tax bracket begins at $373,000 in income and fails to distinguish between the “well off” and billionaires – like the top 20 hedge fund managers whose average income last year was over $1 billion.


snip

The bill would also tax capital gains and dividend income as ordinary income for those taxpayers with income over $1 million. If enacted in 2011, the Fairness in Taxation Act would raise more than $78 billion.

[Vincardog]

1. Top tax rate of 49% is not progressive enough.

[slay]

6. +1

if you have over $100 million dollars, you should be paying 75% AT LEAST in taxes. That would still leave you with 25 MILLION DOLLARS - most regular people like you and I won't make that much money EVER. :mad:

[Pacifist Patriot]

7. Not remotely, but definitely better than what we've got now.

Of course, with the accountants and attorneys they can afford, I'm sure they'll be able to arrange it so their taxable income still doesn't result in an increase in actual tax payments.

[Vincardog]

12. IT is time for an AMT for CORPORATIONS

[Johnny_dollar]

15. +1

Amen! When we had a top rate of 91%, there was full employment and nearly universal prosperity. Proof that high rates don't stifle productivity.

Now, the rich and super rich pay a pittance, and are accumulating all of the country's tangible assets. The peasantry is being reduced to subsistence level.

[Drale]

2. Hopefully they keep these ideas

when they retake the house in 2012.

[Dawson Leery]

3. K/R

[Abq_Sarah]

4. Other than atheletes and movie stars

How many people actually earn an income between 20-100 million? Most of the super rich aren't earning that money through job income.

[aquart]

10. On Wall Street they are.

Amazing how lucrative picking up a phone can be.

[Poiuyt]

11. Most of the super rich get their income from capital gains

Though as the original poster said, there are a lot of these hedge fund managers who get obscene amounts of income.

[Coyote_Bandit]

5. Hmmmmmm......

I realize you are just using the headline at the link but, nonetheless, the headline is misleading. The proposal is for new tax brackets for those with high earnings. The terms millionaire and billionaire are typically used in reference to someones net worth - something which may or may not reflect their earnings.

[aquart]

8. No. 49% in time of war will not buy bullets. 90% in time of war.

THAT is where we start bargaining. 90% over $7 million. If you cannot be comfortable on $7 million you need someone to show you how to budget.

[Jmaxfie1]

9. This is a positive step, yet I doubt it will become law.

However, I hope I am proved wrong.

[Dappleganger]

13. Nowhere near enough.

[Make7]

14. Their timing is all wrong.

This should have been proposed many months before the Bush tax cuts were extended. Then we could have "compromised" to just raise the top income tax bracket back to Clinton era levels and put some progressive taxation on capital gains and dividend income - increasing 5 and 10 percent as that income surpasses the $1 million and $10 million levels.

Too late.
 

[Shallah Kali]

16. I agree they should have done this before but better late than never

make this an albatross around the gop's neck

better they try something now than just sitting around doing diddly again.