Schakowsky Introduces Fairness in Taxation Act

Today, Rep. Jan Schakowsky released the following statement after introducing the Fairness in Taxation Act.

“Today, many Americans feel like the economy isn’t working for them, and that the rules are rigged. When it comes to the tax code, they’re right. GDP has never been higher – but almost all of that growth has gone to the very richest. At the same time, the rich aren’t paying their fair share to meet the urgent needs of our country, from infrastructure and housing to health care and education. Our top tax rate is lower now than it was at any time from 1932 to 1986.

That is why I was delighted to introduce the Fairness in Taxation Act, which would make the rich pay their fair share of taxes by adding new tax brackets for millionaires and billionaires. Right now, our tax code has seven different bracket tax brackets with the highest at 39.6% for income over $418,400. As a result, an individual who makes $418,401,000 is paying the same statutory rate as someone who earns $418,401. Once special tax advantages for the super-wealthy are factored in, their effective tax rate is often far less.

By creating five new tax brackets that only affect millionaires and billionaires, the Fairness in Taxation Act would raise over $800 billion in the next decade with no additional taxes on middle-class families.The revenue from the Fairness in Taxation Act could be injected directly back into the economy by funding federal priorities that will strengthen our communities and grow the middle class.”

The Fairness in Taxation Act creates the following new brackets: 45% tax rate for yearly earned income over $1 million, 46% for income over $10 million, 47% for income over $20 million, 48% for income over $100 million, and 49% for income over $1 billion. It would also end the special tax privileges for capital gains and dividends for millionaires and billionaires.

Rep. Schakowsky introduced the legislation along with the following original co-sponsors: Reps Steve Cohen, John Conyers, Elijah Cummings, Rosa DeLauro, Keith Ellison, Raul Grijalva, Barbara Lee, Jerry Nadler, Eleanor Holmes Norton, Mark Pocan, and Jose Serrano.

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