July 16, 2009
ABC News Senior White House Correspondent Jake Tapper Cites Tax Foundation President Scott Hodge
"Study: House Democrats' Health Care Bill Pushes Top Tax Rates to Over 50% in Most States"
By Jake Tapper
A study by the non-partisan Tax Foundation finds that the 5.4% surtax on top wage-earners proposed by House Democrats to help fund health care reform would push top tax rates over 50% in 39 states.
"That means government would be taking more than half of every additional dollar from high-income taxpayers," said Tax Foundation President Scott Hodge. "The lowest top tax rate would be about 47%—and that's in the nine states that don't tax wages."
The proposal imposes a new surtax of 1 percent on married couples who earn between $350,000 and $500,000 (singles between $280,000 and $400,000). Couples with incomes between $500,000 and $1 million (singles earning between $400,000and $800,000) would have a 1.5 percent surtax imposes. Couples who make more than $1 million, and singles who make more than $800,000, would face a 5.4% surtax.