Three committees writing the lead House bill have called for an additional tax to be imposed on income above $280,000 for singles and $350,000 for married couples. The so-called surtax would run as high as 5.4% on income over $1 million.
But House Speaker Nancy Pelosi, D-Calif., this week began pushing for the surtax to apply only to singles making more than $500,000 and couples making more than $1 million...
A surtax is a tax on top of a person's ordinary income tax. In the case of the House-proposed surtax, the income over the threshold would be taxed at both the top income tax rate -- scheduled to be 39.6% --plus the surtax rate.
The Joint Committee on Taxation estimated that the surtax under the $280,000/$350,000 proposal would raise $544 billion over 10 years.