Paul L. Caron
Dean




Tuesday, July 14, 2009

House Democrats Propose 5.4% Income Tax Surtax on Millionaires to Fund Health Care Reform

House Democrats today unveiled their 1018-page health care reform bill, (H.R. 3200) which increases their previously announced income surtax to (page 197 of the bill):

  • 1.0% on married couples earning $350,000 - $5,000
  • 1.5% on married couples earning $500,000 - $1,000,000
  • 5.4% on married couples earnings > $1,000,000

The 1.0% and 1.5% surtaxes would increase to 2.0% and 3.0% in 2013, unless the OMB certifies $150 billion in health care savings. Other revenue raisers are:

  • Tax on individuals without acceptable health care coverage
  • Delay in application of worldwide allocation of interest
  • Limitation on treaty benefits for certain deductible payments
  • Codification of economic substance doctrine
  • Penalties for underpayments

Press coverage:

The Joint Committee on Taxation has released its Description (JCX-30-09) and Estimated Revenue Effects (JCX-31-09) of the House Bill.

For a state-by-state breakdown of the impact of the surcharge, see Citizens for Tax Justice.

https://taxprof.typepad.com/taxprof_blog/2009/07/house-democrats-propose.html

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Comments

And they said socialism wouldn't work. Bahhh Like Margaret Thatcher said, "socialism is great until you run out of taxpayer money"

Posted by: robertsgt40 | Jul 14, 2009 2:48:32 PM