Democrats want to tax the very rich. Here's who they are
6 min read
fairly easy
President Joe Biden and congressional Democrats want to raise taxes on the rich to pay for their $3.5 trillion plan to expand the nation's safety net, saying the wealthy should pay their fair share.

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."

Here are three things to know about the very rich:

1. It took $540,000 in adjusted gross income to get into the top 1% in 2018, according to the latest Internal Revenue Service data.

That's the highest the threshold has been since at least 2001. (The agency changed its methodology so prior data is not strictly comparable.)

More than 1.4 million returns fell into this category in 2018.

The dollar figure had climbed steadily at the start of the century before plunging in 2008 and 2009, during the Great Recession. It began rising again as the economy and stock market improved.

The top 1% is not a static group, however. Only 30% of taxpayers were in the cohort for five consecutive years between 1991 and 2009, on average, according to 2013 research by Treasury Department Office of Tax Analysis…
Tami Luhby, CNN
Read full article