Here’s the Background Story:
The Democrats have stirred up another batch of controversy regarding health care. Alexandria Ocasio-Cortez proposes a steep 70 percent tax rate on the super-wealthy that would go towards funding health care programs. There’s some misunderstanding of her plan, so we’ll dig into some details.
Here Are the Contributing Factors:
The 70% tax is applicable on income over $10 million. Critics claim Ocasio-Cortez wants to tax every bit of their income once they reach that threshold, but her intent is different. Ocasio-Cortez wants to tax every dollar above $10 million, not their entire income. Currently, the highest marginal tax rate of 37 percent starts at $500,000 and above. Alexandria Ocasio-Cortez expects to bring in $720 billion over 10 years if her plan goes into effect.
Surprisingly, there’s a significant amount of support behind this notion. A total of 59 percent of voters are behind the plan. Republicans stand at 45 percent, Democrats have 71 percent, and 60 percent of independent voters support the tax rate. The 70 percent marginal tax plan has more support than Obamacare, Trump’s wall, and eliminating estate taxes. Do you believe in it?
This plan won’t have any impact on the average American’s earnings. Just over 16,000 Americans would be affected by the 70% tax rate. The Democrats haven’t introduced Alexandria Ocasio-Cortez’s plan as legislation, so it’s just talk for now.
Supporters argue that this type of marginal tax rate has historical precedence. Nixon and Eisenhower proposed similar tax plans during their administration. But individuals opposing Ocasio-Cortez’s plan believe this is undermining hard work and fair-earned income.
This Is What Other People Think:
Poll: Would You Approve Ocasio-Cortez’s 70% Tax Rate?
6% Voted Yes
94% Voted No
What Do You Think?
Do you think Alexandria Ocasio-Cortez’s tax plan would work? Let us know what you think about this marginal tax plan.