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New Millionaire Income Tax Bill Introduced
Posted By Jim On 03/17/2011 @ 2:20 pm In NEWS | 84 Comments
Representative Jan Schakowsky (D-Illinois) introduced  new legislation, the H.R. 1124 Fairness in Taxation Act , on Wednesday, March 16th, that would introduce new tax brackets for those who earned more than $1 million dollars a year. The current top income tax rate  is 35% on income starting at $373,650 and the new legislation would introduce five new brackets, starting at $1 million dollars.
The new brackets would be:
I don’t know what’s more stunning: the reality that there are people who make over a $1 billion a year or that there are people who make over a billion a year and pay the same tax rates as someone making a fraction of that.
In addition to adding new brackets, the bill would also tax capital gains and dividend income as ordinary income for those whose income was over $1 million. According to the Citizens for Tax Justice, these new rates and changes would raise $78 billion, though it’s unclear how that number was calculated.
As for historical precedence, the last time the top rate was over 40% was back in 1986 when the top rate was 50%. Just a few years earlier, in 1981, the top rate was 70% for incomes over $215,400 ($524,421.99 in 2011 dollars). Before you think those rates were high, the top rates have always been very high, peaking into the ninety-percents through World War 2 until the early 60’s. The Tax Foundation has a list of historical tax rates since 1913 .
What do you think of these new rates? Would youl ike to see them implemented?
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 introduced: 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
 H.R. 1124 Fairness in Taxation Act: http://www.opencongress.org/bill/112-h1124/show
 income tax rate: http://www.bargaineering.com/articles/federal-income-irs-tax-brackets.html
 historical tax rates since 1913: http://www.taxfoundation.org/publications/show/151.html
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