The 44-percent rate would give Donald Trump’s tax reform efforts a populist flavor, but will Republicans on Capitol Hill go along?
Steve Bannon wants to raise taxes on some of America’s wealthiest taxpayers, according to a new report from The Intercept.
The new tax rate, on Americans making more than $5 million a year, would be 44 percent, according to The Intercept‘s Ryan Grim.
Grim did the math, and found the tax hike would put $180 billion in the government’s coffers over the next 10 years:
According to IRS data, just over 43,000 people filed tax returns for the year 2014 claiming income of at least $5 million, accounting for $600 billion in taxes, or 8.8 percent of the total taxes paid.
The new rate would only apply to about a third of that money, as the 44 percent kicks in at the $5 million level. Still, the hike would pull in around $18 billion per year, or $180 billion over 10 years.
If the top rate of 44 percent sounds familiar, it’s because another major public figure proposed a similar rate last year: Hillary Clinton.
From NPR (emphasis ours):
The 4 percent surtax would be on top of the current top marginal tax rate of 39.6 percent (so, 10 percent higher) and on top of the total 23.8 percent paid on long-term capital gains right now (so, nearly 17 percent higher).
…Consider that in 1981, Ronald Reagan cut taxes from 70 percent to 50 percent, as Roberton Williams, fellow at the Tax Policy Center (a project of the left-leaning Brookings Institution and Urban Institute), tells NPR. (Meanwhile, this proposal would essentially raise the top marginal rate to nearly 44 percent.)
Bannon’s proposal will surely inspire some chatter as Washington gets ready to debate tax reform. It’s unclear, though, if conservatives on Capitol Hill we be on board with a tax hike similar to one proposed by Hillary Clinton in 2016.
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