A group of Democratic lawmakers and the Patriotic Millionaires, an organization of high-income individuals who favor higher taxes on the wealthy, are calling for the implementation of a 90% income tax on all earnings above $100 million.
A Proposal to Implement Higher Income Tax
This proposal comes amidst growing fears of a recession. Abigail Disney, the granddaughter of Roy Disney, co-founder of The Walt Disney Company, joined the lawmakers in calling for higher taxes on “extremely high income.” She noted that her grandfather paid a 90% marginal tax rate on his income and still amassed a considerable amount of wealth.
The Patriotic Millionaires are also pushing for “all income over $1 million to be taxed the same, regardless of how it is generated, including capital gains and inheritance income.” Meanwhile, California Democratic Rep. Jimmy Gomez is proposing tax reform legislation that would raise estate tax or “death tax” rates, according to a report published in Just The News.
Democrat’s Proposal is Criticized
Critics of the Democrats’ proposal argue that wealthy Americans who support raising taxes should voluntarily pay more in taxes to lead by example. However, Morris Pearl, the chair of the Patriotic Millionaires, countered this argument by stating that they are trying to change the system.
Those in opposition to raising income taxes are pointing to the fragile state of the U.S. economy, which could be heading toward a recession. However, proponents of the tax increase believe it would help narrow the wealth gap and provide much-needed revenue for investment in benefits that would aid working families and those who are not set to inherit a fortune.
Democratic Rep. Pramila Jayapal has also introduced a bill with Massachusetts Democratic Sen. Elizabeth Warren that would impose an annual tax of 2% on the net worth of households and trusts between $50 million and $1 billion, along with an annual surtax of 1% on the net worth of households and trusts above $1 billion. “Our society has been rigged to favor the wealthy,” she said. “This is a solution that would give average people a fair shake.”
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