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 Today Rep. Jan Schakowsky (D-IL), a member of President Obama’s 18-member Fiscal Commission, introduced the” Fairness in Taxation Act,” which would create new tax brackets for persons earning over $1 million. 

 “In the United States today, the richest 1% owns 34 % of our nation’s wealth – that’s more than the entire bottom 90%, who own just 29% of the country’s wealth,” said Rep. Schakowsky. “And the top one-hundredth of 1% now makes an average of $27 million per household per year. The average income for the bottom 90% of Americans? –  $31,244.  It’s time for millionaires and billionaires to pay their fair share, which is why I introduced the Fairness in Taxation Act. This isn’t about punishment or revenge. It’s about fairness. It’s about avoiding budget cuts that harm middle class families and those who aspire to it. We can choose to cut education, job creation and health care, or we can choose to ask those who can contribute more to do so.”

The current top tax bracket begins at $373,000. The proposed Fairness in Taxation Act contains new tax brackets for income starting at $1 million and ends with a $1 billion bracket. The new brackets would be:

  • $1-10 million: 45%
  • $10-20 million: 46%
  • $20-100 million: 47%
  • $100 million to $1 billion: 48%
  • $1 billion and over:  49%

The bill would also tax capital gains and dividend income as ordinary income for those taxpayers with income over $1 million.  If enacted in 2011, the Fairness in Taxation Act would raise more than $78 billion, said Rep. Schakowsky’s office.

 Original co-sponsors include co-chairs of the Congressional Progressive Caucus, Rep. Raul Grijalva (D-AZ) and Rep. Keith Ellison (D-MN), as well as Rep. Jesse Jackson, Jr. (D-IL), Rep. Donna Edwards (D-MD), Rep. Bob Filner (D-CA), Rep. Jerry Nadler (D-NY), Rep. Steve Cohen (D-TN), Rep. John Yarmuth (D-KY), and Rep. Peter DeFazio (D-OR).