House Democrats’ Plan to Tax the Rich Leaves Vast Fortunes Unscathed

 House Democrats’ Plan to Tax the Rich Leaves Vast Fortunes Unscathed

The proposal includes substantial measures to raise taxes on the rich. Taxable income over $450,000 — or $400,000 for unmarried individuals — would be taxed at 39.6 percent, the top rate before President Donald J. Trump’s 2017 tax cut brought it to 37 percent. The top capital gains rate would rise to 25 percent from 20 percent, considerably less than a White House proposal that would have taxed investment gains as income for the richest, at 39.6 percent.

Under the committee’s plan, a 3 percent surtax would be applied to incomes over $5 million. The value of estates shielded from estate taxation, which doubled to $24 million for married couples under the Republican tax cuts of 2017, would go back to $12 million at the end of this year, four years earlier than the scheduled expiration.

The proposal would also raise taxes in a variety of ways on businesses called pass-through entities — like many law firms and financial…

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