The Senate Democratic Leadership announced its plan today to amend President Barack Obama’s jobs plan to include a 5% tax surcharge on the “the richest of the rich,” earning over $1 million a year.The increase would be on top of the tax hike the wealthy will face if the Bush tax cuts are allowed to expire in January 2013 as demanded by President Barack Obama, raising the top marginal tax bracket from 35 per cent now, to 44.6 per cent.
The legislation has yet to be drafted, but Majority Leader Reid has promised a vote on the bill in the Senate “very, very soon.”
Republican leaders have yet to accept Democratic demands to allow the Bush tax cuts to expire — and this surtax will do more harm than good to the jobs bill passing Congress. Democrats are trying to make a populist statement — so that when House Republicans block the bill they can criticise the GOP as defenders of the rich at the expense of the middle class.
The political ploys on both sides of the aisle are contributing to record low approval ratings for Congress this year, with just 14% approving of their job performance in a new poll.
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