Today, Congressman John Yarmuth (KY-3) announced new legislation he has cosponsored, the Fairness in Taxation Act, which will create new tax brackets for millionaires and billionaires.
"At a time when Republicans in Congress are cutting funding and sacrificing the needs of everyone from pregnant women and students to firefighters and nurses, and even seniors and veterans, this legislation asks that the wealthiest Americans tighten their belts and contribute to our economic recovery, just like the rest of the nation," said Congressman Yarmuth. "It is a critical step to ensuring our economy works for all Americans, and not just the wealthy few."
Currently, the richest 1 percent of Americans control 34 percent of our nation's wealth -120 percent more than they did 30 years ago andmore than the entire bottom 90 percent of income-earners. The top one-hundredth of 1 percent now earns an average of $27 million per household per year, while the average income for the bottom 90 percent of Americans is about $31,000.
At the same time, the tax rate for just the top 400 earning households has declined by almost 50 percent over the last 20 years as their income has grown five times larger.
There are currently four tax brackets progressively impacting Americans earning between $1 and $373,650 per year but only one for earners making more than $373,650 annually.
The Fairness in Taxation Act enacts new tax brackets for income starting at $1 million, as follows:
* $1 million -$10 million: 45%
* $10-$20 million: 46%
* $20-$100 million: 47%
* $100 million to $1 billion: 48%
* $1 billion and over: 49%
If enacted in 2011, the Fairness in Taxation Act would raise more than $78 billion.
Sponsored by Congresswoman Jan Schakowsky (IL-9), the legislation is supported by Citizens for Tax Justice, United for a Fair Economy, and the Campaign for America's Future.