GOP Eyes a Million-Dollar Tax Bracket

GOP Eyes a Million-Dollar Tax Bracket


Republicans are considering a new wrinkle in their tax plan: People who earn $1 million or more a year may not get a reduced top rate. Jonathan Swan of Axios reports that Republicans on the House Ways and Means Committee are exploring the possibility of cutting the top marginal tax rate for those earning between $418,000 to $999,999 to 35 percent, while maintaining the current 39.6 percent marginal rate for those earning more.

The plan is by no means final, but some conservatives are already expressing their displeasure. Grover Norquist told Axios, "This isn't the dumbest idea I have ever heard of. But it is in the top 20."

At the same time, the plan would still give top earners a tax cut — just a smaller one overall — since the rates will be reduced on all income below the $1,000,000 mark. Plus, the top personal rate may not matter much if many high-income workers change the way they get paid to take advantage of sharply reduced taxes on pass-through businesses.