An Illinois congressman plans to introduce a bill this week to raise federal income tax rates. It won’t be on you, it’ll be on people who make more than $1 million a year, says U.S. Rep. Jan Schakowsky (D-Evanston). “We can ask people – or require people – who have more money than they or their children or their grandchildren can ever spend to pay a bit more to the common good – money that won’t dent their lifestyles, money that, for most, will hardly be missed,” she said.
Click here for summary
Under current law, an income of $413,200 gets you in the top tax bracket now, 39.6 percent. Schakowsky would add five brackets, starting at 45 percent for income over $1 million, and 49 percent for income over $1 billion. Her bill also would tax most capital gains at the same rate as income from work. All told, this would be worth $80 billion a year to the government.
Schakowsky acknowledges this legislation is going nowhere in the current Congress, but she says if a bill is introduced, it will lead to public debate.
She is also planning legislation to raise the cap on income that is subject to the Social Security tax, which for 2015 will be $118,500.