First on CNN: Democrats will seek smaller 'millionaire's tax'
October 17th, 2011
12:23 PM ET
2 years ago

First on CNN: Democrats will seek smaller 'millionaire's tax'

Washington (CNN) - Senate Majority Leader Harry Reid will announce Monday that Democrats will seek a .5% (point five percent) surtax on annual incomes over $1 million to pay for the first individual component of President Obama's broader jobs package, which was rejected in the Senate last week, a Senate Democratic leadership aide told CNN.

That component of the larger jobs bill would provide $35 billion in aid to states to help preserve jobs for teachers and first responders, the White House and Senate Majority Leaders Harry Reid's office said.

The administration and congressional Democrats hope the slimmed-down bill – aimed at helping teachers and firefighters – will be difficult for Republicans to oppose, especially as the economy sputters and voters seek solutions from Washington.

However, a top Senate Republican leadership aide immediately indicated Republicans – and some Democrats – probably would not be willing to go along with a tax increase to pay for the measure. All Republicans and two Democrats voted against the larger package last week, which included larger tax hikes on millionaires.

Reid will also announce he will try to pass the aid bill later this week, something that likely would need the cooperation of Senate Republicans because the Senate would have to set aside an appropriations bill that is currently pending on the floor.

The new surtax proposal is a fraction of the 5.6% percent surtax on incomes over $1 million that Democrats originally put forward to offset the cost of the president's broader jobs bill, which had a price tag of about $450 billion.

Reid and other Democratic senators are scheduled to hold a press conference call at 2:30 p.m. ET to unveil additional details of their bill.

Also see:

The president goes on the road to promote jobs

White House says aid to teachers will face first Senate vote

Senate Dems consider votes on parts of Obama package


Filed under: Harry Reid • Jobs • President Obama
soundoff (71 Responses)
  1. Sniffit

    "Class warfare on a smaller scale is still class warfare.:"

    Smaller scale than what? The economic policies in effect for the past 4+ decades that have massively redistributed the nation's income, wealth and assets away from the middle-class and poor and towards the already extremely wealthy and corporations? Smaller scale than that doesn't exactly say all that much...the redistribution to the rich and corpoartions has been nothing short of EPIC. THE NUMBERS DON'T LIE.

    October 17, 2011 02:58 pm at 2:58 pm |
  2. Sniffit

    "Second, the Left still hasn't managed to justify increasing taxes on one already over-taxed group in order to provide benefits for a ridiculously under-taxed group."

    It's ok...you can come out of the closet and say "I'm a 53%-er...don't hide that you think it's totally unfair for 47% of the public to escape INCOME TAX (but NO OTHER FORM OF TAXATION) because their "job creator" employers have kept their wages/salaries extremely low and stagnant for the past several decades, such that they can barely afford to eek out their existence without relying on massive consumer debt (which said "job creator" employers are investing in...nice little feedback loop they think)...don't hide it...wear it proudly like a badge of conservative honor. It'll help us identify you when the revolution begins.

    GET BUSINESS OUT OF THE WAY OF GOVERNANCE.

    October 17, 2011 03:02 pm at 3:02 pm |
  3. Brian

    CNN touting the spin of "Some Democrats" to refer to the 2 Blue Dogs who have been against this bill from the go.

    October 17, 2011 03:03 pm at 3:03 pm |
  4. TEA PARTY MIKE

    No more bailout money for the states. States can raise their own taxes to pay for more state government employees if they want to. Or they can prioritize their spending in a way to keep more teachers and such. Or the states can wait just like the private sector and hire more workers when the economy gets better. Obama and the Democrats can scream and cry all they want, Republicans should not pass a bill to bailout the states. This does not grow the economy. It only rewards those who fund Obama and Democrat campaigns.

    October 17, 2011 03:05 pm at 3:05 pm |
  5. TEA PARTY MIKE

    Before we raise taxes on anyone including the rich we need the government to stop gambling with and wasting the tax dollars they already get. Obama and the Dems attack Wall Street for taking too much risk and yet they justify gambling on Solyndra with over a half billion of tax payer money when they were told Solyndra was a very high risk. The Obama administration is just as bad as Wall Street on this. There are reports out there of dozens of government agencies that overlap and duplicate and waste billions of tax payers dollars. Get rid of the waste and excessive government before any taxes are raised. It is the moral thing to do to first insure you are not wasting peoples money before you ask for more.

    October 17, 2011 03:05 pm at 3:05 pm |
  6. Jim

    Do not send my tax dollars to support unions just to get a reelection vote!

    October 17, 2011 03:11 pm at 3:11 pm |
  7. pattieb

    What? .5%,? What the hell is the point then? Oh right, .5% won't hurt Harry, Nancy, Kerry, Feinstein and all the other ultra rich on the left. what flippin' hypocrites. Hope the OWS loons are paying attention to this but they are probably too busy having sex on the streets, smoking their pot and taking dumps on police cars. Interesting how these little fools ain't got a clue as to what is really going on. Pay no attention to the man behind the curtain (aka Obama).

    October 17, 2011 03:14 pm at 3:14 pm |
  8. FM

    Guest wrote:

    "Just a political game to give President Obama something to run against in 2012 at our expense. They know this will NEVER get through the House, so why are they wasting time with it?"
    ______________________________________________________
    I do not think there is anyone who is playing with peoples life especially those who are hurting. If the House will not let this go through, then they should be prepared to be rewarded by people!

    October 17, 2011 03:14 pm at 3:14 pm |
  9. icecold

    This is a smart plan by the dems and very reasonable. Millionaires are only looking at about a $5000 increase in taxes. Plus the 35b for teachers will be paid for and deficit neutral.

    October 17, 2011 03:21 pm at 3:21 pm |
  10. Jason

    "Hardest working"

    I work my butt off everyday, but I'm not a millionaire. But that methodology, I should be loaded.

    Unfortunately, not everyone can be rich. It is just the way things are. However, the wealth is not distributed proportionally.

    October 17, 2011 03:22 pm at 3:22 pm |
  11. Rudy NYC

    "Redistribution of wealth for political purposes is a pernicious and destructive tactic."
    ------------------------
    Exactly, that's precisely why we are where we are today. 30 years of "trickle down" economics has stagnated our economy.

    October 17, 2011 03:32 pm at 3:32 pm |
  12. Orchid333

    You know what? Why bother. The Republican congregate will not budge on anything the Dem's want. They have one single goal and that's to stall the government from doing anything so they can blame Obama at election time. Nothing but tactics and shenanigans and I'm VERY sick of it. "Occupy Wall Street" movement? How about "Occupy Government" movement. Get ALL of these yahoos out and put in some REAL people who don't have an agenda other than getting the important things done.

    October 17, 2011 03:35 pm at 3:35 pm |
  13. Morris Chandler

    I don't think percentage points will make a difference. The house is not going to let Obama get anything that he and the Country need. Remember what the Senate Minority Leader said about a one term President.

    October 17, 2011 03:36 pm at 3:36 pm |
  14. GianCarlo

    Surpise! Suprise! As usual these Democratic wimps always give in to the Republicans. The DNC is doomed, why don't we just elect Republlicans and do away with the DNC since they are a worthless party that is no good for nothing. I say just let the Republicans take over American since there is no one out there willing to fight for the Middle class or the poor. So lets just get it over America let the NAZI party take over. Enough is Enough!

    October 17, 2011 03:43 pm at 3:43 pm |
  15. GianCarlo

    Surpise! Suprise! As usual these Democratic wimps always give in to the Republicans. The DNC is doomed, why don't we just elect Republlicans and do away with the DNC since they are a worthless party that is no good for nothing. I say just let the Republicans take over American since there is no one out there willing to fight for the Middle class or the poor. So lets just get it over America let the NZI party take over. Enough is Enough!

    October 17, 2011 03:45 pm at 3:45 pm |
  16. Smaller is Better?

    Great picture, what is Schumer looking at anyway? OK, Obama walks back his "job" bill from his all or nothing approach, and now is willing to do it in itsy bitsy pieces. Now Reid is walking back the millionaires tax, with another smaller is better approach. How small do you need to make a bad idea before it is better?

    October 17, 2011 03:45 pm at 3:45 pm |
  17. 3generations

    Sorry Dingy Harry, the answer is no to the 0.5% surtax! People are dumb and Republicans are not as well. All he's doing is splitting the surtax based on the split of the legislation, when it all adds up it'll be 5.0% plus.

    I'd be game for spending money on teachers, but they'd have to those that work in private institutions. The teachers unions are just going to Absorb all of this money anyways. We need 1st responders, but it's sad the democrats continue to package people we do need with union teachers.

    October 17, 2011 04:02 pm at 4:02 pm |
  18. PREDICTA

    Size doesn't matter. Who's going to vote for tax increases in an election year? Political suicide if you do.

    October 17, 2011 04:08 pm at 4:08 pm |
  19. Faustus

    Geoffrey in Lowell MA,

    You do realize that during Reagan's last year in office the highest tax rate was 28%? Under Reagan, the highest tax bracket reduced from 70% to 50% to 28%.

    October 17, 2011 04:10 pm at 4:10 pm |
  20. Democrat Class Warfare - Destroying the economy, destroying the country

    How many teacher and fire fighter jobs would have been saved with the $535 MILLION the Obama adminstration blew on loans to Solyndra? How many teacher and fire fighter jobs would have been saved with the $5 BILLLION the Obama adminstration blew on loans to these green company scams on the last day of the fiscal year?

    When a government is WASTING hundreds and hundreds of BILLIONS of our money, it is NO RIGHT to ask for more!

    If my town needs more teachers, LET THEM HOLD A TOWN MEETING and explain why. If my town wants more fire fighters, then they need to send that request to the TOWN MANAGER and if the people approve it, raise our proterty tax rates to fund it. THE FEDERAL GOVERNMENT HAS NO BUSINESS FUNDING THESE POSITIONS!!

    Bottomline this is nothing but Obama and Democrat Re-election Scam Theater piting one segment against another to distract from their YEARS of failed policies.

    October 17, 2011 04:10 pm at 4:10 pm |
  21. nic

    No – 0.5% IS half of one percent... (point five percent) as it says in the article. .5 = 50% but .5% does not...

    October 17, 2011 04:41 pm at 4:41 pm |
1 2 3