House Democrats Seek New Tax On Wealthy To Pay For Health Care

July 10, 2009
Deirdre Walsh CNN Congressional Producer

WASHINGTON (CNN) — Democrats on the House Ways and Means Committee on Friday proposed a graduated tax on wealthy Americans to pay for health care reform, several Democratic sources told CNN.

The new tax would apply to individuals who make more than $280,000 a year and married couples who make more than $350,000, the sources said.

Individuals making up to $400,000 and couples making up to $500,000 would be assessed a 1 percent tax on their adjusted gross income, they said. A higher rate would apply to individuals making up to $800,000 and for couples making up to $1 million per year, and an even higher rate would apply to individuals and couples with higher incomes.

The rates for the tax on the two higher brackets are still being finalized, according to the sources.