Reid Proposes Surtax on ‘the Richest’ to Pay for Jobs Plan
Senate Democratic leaders on Wednesday proposed a 5 percent surtax on people with incomes of more than $1 million a year to pay for the package of job-creation measures sought by President Obama and to quell a brewing revolt among Democrats against the White House plan
The Senate majority leader, Harry Reid, Democrat of Nevada, said the surtax would raise $445 billion over 10 years, just about the amount needed to pay for the jobs bill. Mr. Reid said his proposal would “have the richest of the rich pay a little bit more” — “5 percent more to fund job creation and ensure this country’s economic success.”
Mr. Reid’s proposal was meant to draw a sharp contrast with Republicans and to win over Democrats who were resisting the president’s proposal due to the tax increases he had suggested.
The approach is unlikely to win any backing from Republican leaders who strenuously oppose increases in tax rates, saying they would put a damper on the economy and penalize “job creators.” But the plan, which Senate Democrats had aired last year to a cool response from the White House, is seen by party strategists as having appeal with the public.
Indeed, the Democratic proposal seems much more about politics than policy. Even if the wavering Democrats could be rounded up, Senate Republicans could block the proposal by denying Democrats the votes needed to overcome a near-certain filibuster. In the House, which Republicans control, it would be unlikely to even come to a vote since Republicans led by Speaker John A. Boehner have dug in against any new tax increases…