• This amendment eliminates the surtax in the Democratic leadership’s bill that starts in 2013 for those Americans who are not millionaires. This amendment is necessary to save Americans, small businesses and manufacturers from crushing taxes.
• The surtax in the Democratic leadership’s bill would apply to any adjusted gross income exceeding $280,000 a year for an individual and $350,000 for a couple filing a joint return. The tax rates would range from 1 percent to 5.4 percent. According to House Democrats, these taxes would fall largely on small businesses and manufacturers.
• Whether the surtax takes effect for those making less than $1 million starting in 2013 depends on whether the OMB Director says that there are excess health care savings as a result of the changes the bill makes to Medicare and Medicaid. If the savings total more than $700,000,000, there is no surtax for anyone making less than $1 million. This amendment says that the study required by the bill to determine whether excess savings occur must find that more than $700,000,000 was saved. Because it must make this finding, the surtax for those making under $1 million will be eliminated.
• This surtax will have a crushing impact on small businesses and manufacturers. This isn’t Republicans talking. This is according to 22 House Democrats.
• According to those House Democrats, because of this surcharge, “many successful small businesses – the very kind business that should lead in creating jobs and help us emerge from this recession – will be taxed at over 50 percent.”
• Further, these House Democrats commented that this surtax “will discourage entrepreneurial activity and job growth.”
