GOP Tax Hike

Republican members of the Senate Finance Committee have confirmed discussions over increasing the tax rate on income above $1 million to 39.6%--the highest income tax bracket prior to passage of the 2017 tax reform package. According to some members, the rationale behind increasing the rate from 37% and 39.6% is to provide funding to support increasing the child tax credit. If the 2017 tax reforms are not extended beyond the end of 2025, the top income tax rate would revert to the 39.6% rate for the highest income levels.

We asked two professors and authors of ALM’s Tax Facts with opposing political viewpoints to share their opinions about Republican committee members’ proposals to raise the income tax rate on earnings over $1 million.

Below is a summary of the debate that ensued between the two professors.