President Donald Trump‘s proposed millionaire tax, which aims to increase the tax rate on income over $2.5 million, is being seen as largely symbolic and unlikely to significantly impact revenue or inequality by experts.
What Happened: Howard Gleckman, from the Urban-Brookings Tax Policy Center, stated that the proposed tax change would not significantly affect revenue or inequality, reported Fortune. The tax hike, which would increase the rate from 37% to 39.6% on income over $2.5 million, is expected to raise about $8.2 billion this year and impact around 80,000 households.
Most millionaires and billionaires in the U.S. earn a small portion of their income in the form of salaries, with the majority coming from capital gains, which are taxed at a lower rate. Program director at the Institute for Policy Studies, Sarah Anderson, told the publication that the proposed tax increase would …