Ocasio-Cortez Tax Plan Creates 83% Top Income Tax Rate
In an upcoming 60 Minutes interview, Congresswoman Alexandria Ocasio-Cortez (D-N.Y.) said she wants federal income tax rates to increase significantly.
Her proposal would raise federal top rates up to 70 percent.
States that have an already high local tax rates would put some at almost 83%. New York State, for example, has a top income tax rate of 8.82 percent while New York City has a top rate of 3.876 percent.
Under this proposal, her own constituents would pay a top combined income tax rate of 82.7 percent.
California taxpayers would pay a top rate of 83.3 percent. Ocasio-Cortez’ 70 percent plus the California rate of 13.30 percent.
She claimed in an interview with Anderson Cooper on CNN that it is all part her plan to create vast new government spending programs. Ocasio-Cortez self-described her plan as a “radical” environmental agenda.
Americans need to “start paying their fair share in taxes” to fund the “Green New Deal”. Cortez called for the end of fossil fuel use within 12 years.
“Once you get to like the tippy tops, on your 10 millionth dollar, sometimes you see tax rates as high as 60 or 70 percent. That doesn’t mean all $10 million are taxed at an extremely high rate, but it means that as you climb up this ladder you should be contributing more,” she said.
Even liberal Cooper pushed back against Ocasio-Cortez. He labeled the plan a “radical agenda” and noted the seemingly impossibility of its goals.
Ocasio-Cortez responded by embracing the “radical” label and compared herself to presidents Abraham Lincoln and Franklin D. Roosevelt.
“Abraham Lincoln made the radical decision to sign the Emancipation Proclamation. Franklin Delano Roosevelt made the radical decision to embark on establishing programs like Social Security. That is radical. If that’s what radical means, call me a radical,” Ocasio-Cortez finished.
American’s For Tax Reform explains the ramifications:
“In addition to this high income tax rate, taxpayers would remain impacted by other taxes including payroll taxes, taxes on capital gains income and dividends, and the death tax.
Ocasio-Cortez has not released details of any other tax hikes to pay for her plan. This would likely not be the only income tax increase if she had her way. For instance, Senator Bernie Sanders (I-Vt.) proposed a $2 trillion 2.2 percent payroll tax on all families and a $10 trillion 6.2 percent payroll tax on all businesses as part of his socialized healthcare plan.
Congresswoman Rosa DeLauro (D-Conn.) and Congresswoman Jan Schakowsky (D-Ill.) have proposed numerous tax hikes. They include a new, 5 percent surtax on those making $500,000 per year. Also an increase in the Obamacare payroll tax from 0.9 percent to 4 percent.
Regardless of the specific proposal, it is clear that Democrats want higher taxes on the American people. They made clear when they changed the House rules to make it easier to raise taxes.”
Democrats are set to vote on a bill that changes the rules of the House to make it easier to raise taxes. Democrats are proposing to abolish the Republican rule requiring any bill that increases federal income taxes to have the support of three-fifths majority of Congress.
This change is being proposed as part of H.Res.6, the House Democrats’ rules package for the 116th Congress.