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Healthcare bill: Taxes would rise on incomes above $350K

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House Ways and Means Committee Chairman Charles Rangel today got more specific about his plan to tax high-income-earners to pay for healthcare reform, including coverage of the uninsured.

From Dow Jones newswires:

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The House of Representatives will propose a surtax on taxpayers with income above $350,000 to help fund a $1 trillion health-care overhaul, House Ways and Means Chairman Charles Rangel, D-N.Y., said Friday. The tax will be graduated, so wealthier taxpayers will be subject to a higher rate. While the rates themselves have yet to be nailed down, Rangel indicated they would be in the range of 1% for married couples making $350,000, 2% for those with income above $500,000, and 3% for those with incomes over $1 million.

A bill is expected to take shape next week in the House.

In his 2007 healthcare plan, Rangel proposed an extra 4% tax on incomes above $200,000 and an additional 0.6% on incomes above $500,000.

Earlier in the week the rumor was that Rangel, this time around, wanted to impose higher taxes starting at income of $250,000. So he has raised the income threshold by $100,000.

The top federal tax rate now is 35% on taxable income above $372,950 for married couples.

See this story for more on how the battle is shaping up over healthcare reform and how to pay for it.

-- Tom Petruno

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