Mar
20

Illinois Representative Wants New Tax Brackets for the Rich

March 20, 2011

The country is in financial crisis, and Chicago is no different. One Illinois Senator is attempting to reduce the deficit by creating a new tax system for millionaires and billionaires.

Representative Jan Schakowsky (D-IL) this week introduced the Fairness in Taxation Act, which would create new tax brackets for residents with incomes from $1 million and up.

Jan

Illinois Representative Jan Schakowsky says that income inequality is the worst we've seen it since 1928.

Currently, the top marginal tax rate of 35 percent applies to those with incomes that start at $373,650.

So basically, Oprah Winfrey and Oprah Winfrey’s personal chef are in the same tax bracket.

“In the United States today, the richest 1 percent owns 34 percent of our nation’s wealth – that’s more than the entire bottom 90 percent, who own just 29 percent of the country’s wealth,” said Rep. Schakowsky. “And the top one-hundredth of 1 percent now makes an average of $27 million per household per year. The average income for the bottom 90 percent of Americans? $31,244.

“It’s time for millionaires and billionaires to pay their fair share, which is why I introduced the Fairness in Taxation Act. This isn’t about punishment or revenge. It’s about fairness. It’s about avoiding budget cuts that harm middle class families and those who aspire to it. We can choose to cut education, job creation and health care, or we can choose to ask those who can contribute more to do so.”

The new tax rate would start at 45 percent for those making $1 million and would increase on a sliding scale.

Here’s that new scale:

*$1 million to $10 million: 45 percent

*$10 million to $20 million: 46 percent

*$20 million to $100 million: 47 percent

*$100 million to $1 billion: 48 percent

*$1 billion and over: 49 percent

The bill would also tax capital gains and dividend income as ordinary income for those with incomes over $1 million.

The measure is endorsed by many groups, including Citizen Action Illinois, Campaign for America Future, Wealth for the Common Good and Citizens for Tax Justice, which estimates that if Schakowsky’s Fairness in Taxation Act is enacted, it would raise more than $78 billion in the first year alone.

May we all someday fall into that 45 percent or higher tax bracket.

Categories: Economy

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Tracey

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1 Comments

1

Well Jan they already tryed this in New York. When New York raised their taxes on the wealthy a couple of years ago, besides losing Rush Limbaugh as a tax paying citizen, they lost Richard Golisano. You don’t know who he is? He started Paychex. Not only did he pay a massive amount of taxes to New York, he also donated even more including a children’s wing on the Syracuse hospital. He was interviewed in Florida in front of his very large home where he spoke of the tens of thousands of dollars he was saving every day by moving to Florida. So what did New York lose? Besides a lot of tax revenue, they lost someone who gave away a lot of money to help others. Lucky Florida will now benefit from New York’s stupidity…
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