The Millionaire Tax Proposal Fails To Pass The House
The difference in tax rates, and who pays what, has long been a source of debate in America. There are those that push for a flat tax, which would mean paying a flat percent of your income as tax rather than being forced to go through the complex calculations that make up the current income taxation scheme. Then there are those that propose those that make the most should pay the most. Along these lines, one lawmaker recently proposed an increase in taxes for those with the highest incomes.
The so called Millionaire’s Tax has failed to pass a vote of the House. The reasons why include:
- Fear of loss of jobs.
- Concern that taxpayers making over the threshold figure will simply close up shop and take on jobs that pay less, thus reducing the amount of income tax paid and collected.
The proposal was to increase taxes by 3% for those individuals who make more than a million dollars in any given taxable year. The excess revenue raised through this tax would be used to fund schools. Because the measure failed to pass the House, it has been tabled for future consideration. Until Congress enacts legislation that changes the current income tax laws, it is critical to stay on top of the requirements. Knowing what you can and cannot deduct, and which filing status best meets your needs is a job for a knowledgeable tax professional. We can help you make these determinations, so that you maintain a positive tax status with the IRS and steer clear of an audit or other investigation. If, however, you are already facing an audit or questioning from the taxing authorities, let us help you through the process. We focus our practice on legal tax issues, and can help you with a wide variety of tax related inquiries.