President Obama’s deficit-reduction proposal, announced today, includes a new minimum tax for households that make more than $1 million per year. The administration has refused to offer any details as to how the tax will be implemented, but as ABC’s Jon Karl pointed out on This Week, raising taxes on millionaires is hardly a “new idea.” Furthermore, it’s an idea that even Democrats have been loath to enact when they had the chance.
House Democrats initially included a so-called “millionaire’s tax” in their version of the health-care reform bill. In order to pay for the sweeping expansion of the U.S. health-care system that is Obamacare, they proposed a 5.4 percent surtax on household income above $1 million.Ultimately, the idea was rejected by the Democrat-controlled, filibuster-proof Senate. Majority Leader Harry Reid (D., Nev.) dropped the millionaire’s tax in favor of a new excise tax on high-cost, or “Cadillac,” health plans.
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