Wealth Blog

Finance Blogs » Wealth » An extra tax for millionaires?

An extra tax for millionaires?

By Judy Martel · Bankrate.com
Sunday, October 9, 2011
Posted: 9 am ET

In an effort to cover the cost of his $447 billion jobs plan, President Barack Obama and the Democrats have proposed a 5.6 percent surtax on individuals who earn more than $1 million a year.

"It is time for millionaires and billionaires to pay their fair share to help this country thrive," said Senate Majority Leader Harry Reid (D., Nev.) in his announcement of the tax. Democrats say the tax, which would be imposed Jan. 1, 2013, will raise $450 billion over 10 years. Republican lawmakers are opposed to the surtax as a way to support the jobs plan. Billionaire Warren Buffett has publicly written that he supports higher taxes on the wealthy, but as a way to reduce the federal deficit.

The so-called millionaires' tax proposal is meant to replace earlier plans to limit the tax deductions for those earning $250,000 or more, which Republicans and some Democrats spoke out against.

The surtax would apply to all earned income, whether it comes from wages (top marginal tax rate is 35 percent) or capital gains (taxed at 15 percent for long-term holdings).

According to the Wall Street Journal, the bill is likely to be blocked by Republicans and some Democrats. But the hue and cry to tax the rich to either help reduce the federal deficit or otherwise improve the economic outlook doesn't seem to be fading.

Do you think a millionaires' tax should be imposed, and if so, should it go toward funding the jobs proposal or reducing the deficit?

Keep up with your wealth and follow me on Twitter.

Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
3 Comments
Wolverine
October 11, 2011 at 3:24 pm

What does it matter what I think? This will never pass.

And that's the sum of it for the US Government, it doesn't matter what we think, it only matters what they want. The needs of the few millionares outweigh those of the millions of Americans.

jon
October 09, 2011 at 6:23 pm

Politicians need to stop wasting the money they get.

Steve Foley
October 09, 2011 at 1:15 pm

Please stop referring to people who make a million a year as simply "millionaires". Making a million in one single year would usually imply *far more* wealth than a simple millionaire. This is exactly the kind of disinformation that is destroying any hope of economic recovery in this country