I'm not out to punish anyone. I'm a capitalist. If you can make a million or a billion dollars, that's great. All I'm asking is you pay your fair share. Pay your fair share just like middle-class folks do. But that isn't happening now. — President Joe Biden
I'm not out to punish anyone. I'm a capitalist. If you can make a million or a billion dollars, that's great. All I'm asking is you pay your fair share. Pay your fair share just like middle-class folks do. But that isn't happening now. — President Joe Biden
Democrats want to tax the very rich. Here's who they are
The rich would be hit in a variety of ways under the proposal advanced by the House Ways & Means Committee.

The House legislation calls for reversing a key plank of the Republicans' 2017 tax cuts by returning the top marginal income tax rate to 39.6%, up from 37%. That new top rate would apply to single filers with taxable income greater than $400,000 a year and married couples filing jointly earning more than $450,000 annually.

That's lower than the roughly top 1% threshold that Biden proposed earlier this year in his American Families Plan. But the committee's plan also is in keeping with the President's pledge that he would not increase taxes on those earning less than $400,000, which is more than 90% of taxpayers.

All told, the legislation would bring in an additional $1 trillion in revenue from high-income Americans, according to the committee.

"I'm not out to punish anyone. I'm a capitalist. If you can make a million or a billion dollars, that's great," Biden said in an economic speech Thursday. "All I'm asking is you pay your fair share. Pay your fair share just like middle-class folks do. But that isn't happening now."
  • It took $540,000 in adjusted gross income to get into the top 1% in 2018, according to the latest Internal Revenue Service data.
  • The top 1% accounted for roughly 21% of total adjusted gross income in 2018.
  • The top 1% paid $615.7 billion in federal income taxes, about 40% of the total, in 2018.
In addition, lawmakers would slap a 3% surcharge on individuals earning more than $5 million. This means that their top marginal income tax rate would rise to 42.6%, and it would push their capital gains rate to 28% before the 3.8% net investment income tax is factored in.

And that net investment income tax would be extended to cover business income included on taxpayers' personal returns, known as pass-through income. Currently, it is only levied on interest, dividends, capital gains and other forms of investment income.

The legislation would also end the higher estate tax exemption enacted under the Republicans' tax cuts this year, instead of after 2025. The exemption would be $6 million per person in 2022, a sharp decline from this year's $11.7 million level.


The Democrats are planning to push through the $3.5 trillion budget package via reconciliation so it would not need any Republican support in the Senate.
Read the full article: https://www.cnn.com/2021/09/19/politics/democrats-taxes-rich-explainer/index.html