Chart: Surtax on millionaires would hurt little, net little, say analysts
An analysis of Obama’s proposed surtax on millionaires to fund his job program will be “paid by an infinitesimally small percentage of American taxpayers, and that the surtaxes themselves would constitute an infinitessimally tiny percentage of the income of the wealthy,” according to The Washington Posts‘s Greg Sargent. Despite this, political gridlock from Republicans and centrist Democrats has continued over the proposed surcharge and the effect it may have on small businesses.
But Sargent says that this worry is inflated. The chart below shows the proposed tax amounts in Obama’s bill, compared to the income of the individual high earner – individuals that the Occupy Wall Street movement has termed the 1 percent.
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According to data from Citizens for Tax Justice, the reality of the surtax would look like this:
- If the new infrastructure proposal were enacted, the 0.7 percent surtax would amount to all of $13,457 on average for the millionaires that would pay it.
- If the new infrastructure proposal were enacted, the surtax on millionaires would impact a grand total of 345,532 taxpayers nationwide — or 0.2 percent of American taxpayers.
- In a large majority of states, fewer than 5,000 taxpayers in each state would feel these surtaxes. In around half the states, fewer than 3,000 in each would be impacted. In most states, 0.2 percent or fewer of taxpayers would pay the surtax.