Republican tax hike proposal for millionaires could raise $400B in decade - Bloomberg

A Republican proposal to increase taxes on millionaires could potentially generate around $400 billion over ten years, according to new estimates provided to Bloomberg News, Report informs.

This additional revenue could help offset the cost of the party’s multi-trillion-dollar tax package.

The Budget Lab at Yale has projected that a 40% tax rate on income over $1 million could generate $420 billion over a decade. In a separate preliminary analysis, The Tax Foundation estimated that the new tax bracket could raise $358 billion over the same period. These estimates were provided by Garrett Watson, the director of policy analysis for the think tank.

The slight difference in the estimates from these non-partisan think tanks is due to differing assumptions about economic performance. The figures suggest that the introduction of a tax bracket for millionaires could assist President Donald Trump in fulfilling some of his campaign promises, including the elimination of taxes on tips, which is projected to cost $118 billion over ten years.

While Trump has indicated that he is open to higher taxes on the wealthiest Americans, not all Republicans are in agreement with this idea.