Hillary Clinton proposed Monday a 4% tax increase on people who earn more than $5 million a year, pledging in Waterloo, Iowa, to “get the wealthy and the corporations to pay more of their fair share” in taxes.
Clinton’s plan – what she is calling the “fair share surcharge” – would raise taxes on .02% of taxpayers, Clinton’s campaign said Monday, leaving 99.98% all taxpayers unaffected. The proposal would also pair with the “Buffett Rule,” a tax proposal pushed by the Obama administration that would require a 30% rate in federal taxes on anyone making more than $1 million dollars a year after charitable donations.
“It’s outrageous that multi-millionaires and billionaires are allowed to play by a different set of rules than hard-working families, especially when it comes to paying their fair share of taxes,” Clinton said in a statement.
Clinton has made taxes a point of contrast with both Vermont Sen. Bernie Sanders, her top Democratic opponent, and the host of Republicans running for president.
“I disagree with Republicans who say that America needs yet another massive tax cut for the very rich. That’s the exact opposite of what we should do,” Clinton said. “Instead, let’s make sure the rich pay their fair share. That’s what my proposal would do.”
Clinton has hit Sanders proposing a tax increase on middle income earners to pay for a paid family leave plan backed by members of the Senate. She also regularly touts herself as the only Democratic candidate for president to pledge not to raise taxes on the middle class, a subtle knock against Sanders.
Sanders’ campaign, however, commended the plan Clinton announced today in an interview with MSNBC.
“I’m glad that Secretary Clinton is proposing this type of approach, which we’ve been consistently advancing for since the very beginning, frankly,” said Arturo Carmona, Latino outreach director for Sanders’ campaign.
This proposal – along with the Buffett Rule – is not all of Clinton’s tax plan, according to aides, who said the Democratic front-runner will continue to roll out more tax proposals this week.