Business

House Democrats are proposing a 39.6% tax cut at these income levels.

Drew Angerer | Getty Images News | Getty Images

House Democrats have proposed a marginal income tax rate of 39.6% for individuals, part of a radical change in the tax code to fund climate investments and an expansion of the safety net. of the United States.

This tax, an increase from the current 37% tax on wealthier taxpayers, would reach for single individuals with a taxable income of more than $ 400,000, according to a legislative scheme published by the Committee on Wealth and Taxation. Half of the House on Monday.

It would also apply to married people who file a joint return whose taxable income exceeds $ 450,000; to heads of households above $ 425,000; to married persons presenting separate incomes of more than $ 225,000; and to assets and trust of more than $ 12,500.

More from Personal Finance:
House Democrats are proposing new retirement plan rules for the rich
The House Democrats plan abandons the repeal of a tax provision for heirs
House Democrats are proposing to raise capital gains tax to 28.8%.

If the plan becomes law, the changes will begin in 2022. They could raise $ 170 billion over the next decade, according to a Joint Committee on Taxation. esteem issued on Monday.

The current rate of 37% starts at higher income thresholds than the House Democrats have proposed now. In 2021, they apply to singles and heads of households when income exceeds $ 523,600 and for married common presenters more than $ 628,300, for example.

The Biden administration has also demanded an initial tax rate of 39.6%. The highest rate will increase to that level in 2026, even if Democrats are unsuccessful in their attempts to increase it in the short term, due to the provisions in the 2017 Tax Cuts Act.

The proposal is among many other House Democrats aimed at taxpayers who earn more than $ 400,000 a year, including higher taxes on long-term capital gains and qualified dividends and changes in the way the rich use their accounts. pension.

Changes to individual and corporate tax rules will increase by more than $ 2 trillion over the next decade, according to to the Joint Committee for Imposition.


Source link

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button