House Democrats unveiled a sweeping tax-hike plan this week that dramatically raises the rates paid by wealthy Americans and corporations – but the proposal could also have long-term implications for the middle class.
The proposal would roll back key parts of Republicans’ 2017 tax law, including restoring the top individual income rate to 39.6%.
The new rate would apply to single individuals with taxable income of more than $400,000, according to a copy of the legislative outline. It would also apply to married individuals filing jointly whose taxable income tops $450,000; to heads of households with income topping $425,000; to married individuals filing separate returns over $225,000; and to estates and trusts over $12,500.
The plan also includes a 3% surcharge on income exceeding $5 million and keeps in place a 3.8% net investment income tax.
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