<div>     TAX POLICY CENTER REVENUE ESTIMATES FOR 10% SURTAX PROPOSALS Oct. 8, 2019 The Tax Policy Center has provided revenue estimates and distributional analyses that assess a 10 percentage-point surtax on taxpayers adjusted gross incomes (AGI) for three income level options. The revenue raised ranges from $500 billion to $634 billion over 10 years as shown in the table on the next page. OPTION 1: RAISES $634 BILLION OVER 10 YEARS <ul><li>10-percentage point surtax applied on all AGI above $2 million for married couples filing jointly and $1 million for single filers. (For married couples filing separately the threshold is $1 million for each).</li></ul> <ul><li>In 2020, it will raise about $23 billion; by 2029 it will raise at least $87 billion. Revenues are lower in the early years of the surtax as taxpayers seek to avoid the tax by shifting the timing of capital gains realizations.</li></ul> <ul><li>About 0.2% of tax units will be affected—that is, 2 out of every 1,000 tax units, or 329,000 tax filers. In other words, 99.8% of tax units will not pay the surtax. By 2029, slightly over 0.3% of tax units will be affected, or about 513,000 taxpayers. Roughly 99.7% of taxpayers will still not pay the surtax in 2029.</li></ul> OPTION 2: RAISES $585 BILLION OVER 10 YEARS<ul><li>10-percentage point surtax applied on all AGI above $2 million for all filers.</li></ul> <ul><li>About 0.2% of tax units will be affected in 2020, or 268,000 tax filers. By 2029, about 0.2% of tax units will be affected, or about 421,000 taxpayers.</li></ul> OPTION 3: RAISES $500 BILLION OVER 10 YEARS<ul><li>10-percentage point surtax applied on all AGI above $2.5 million for all filers.</li></ul> <ul><li>About 0.1% of tax units will be affected in 2020, or 196,000 tax filers. By 2029, about 0.2% of tax units will be affected, or about 304,000 taxpayers.</li></ul> FOR ALL OPTIONS <ul><li>Surtax applies to all income: regular income like wages and salaries and investment income like capital gains and dividends. The surtax will raise the top tax rate on:</li></ul> <ul><ul><li>Income from wages and salaries from 37% to 47%</li></ul></ul> <ul><ul><li>Income from capital gains from about 24% to about 34%. (Added to the 20% top capital gains rate is a 3.8% surcharge on investment income of married taxpayers filing jointly</li></ul></ul> <div class="indented">with modified AGI above $250,000 a year and singles above $200,000.)</div>●The surtax would be effective January 1, 2020 and is not indexed for inflation.  <table><tr><td> </td><td colspan="4">REVENUE ($ Billions)</td><td> </td><td> </td><td> </td><td colspan="2">DISTRIBUTION</td><td> </td><td> </td></tr><tr><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td style="background-color: #D9D9D9"> </td><td>2020</td><td>2020</td><td>2029</td><td>2029</td><td> </td></tr><tr><td> </td><td>10-Year</td><td> </td><td> </td><td> </td><td> </td><td style="background-color: #D9D9D9"> </td><td>% of Tax</td><td># of</td><td>% of Tax</td><td># of</td><td> </td></tr><tr><td> </td><td>Total</td><td>2020</td><td>2022</td><td> </td><td>2029</td><td style="background-color: #D9D9D9"> </td><td>Units</td><td>Taxpayers</td><td>Units</td><td>Taxpayers</td><td> </td></tr><tr><td>$2 Million AGI married</td><td> </td><td> </td><td> </td><td> </td><td> </td><td style="background-color: #D9D9D9"> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr><td>couples filing jointly</td><td>$633.9</td><td>$22.8</td><td>$54.4</td><td> </td><td>$87.4</td><td style="background-color: #D9D9D9"> </td><td>0.2%</td><td>329,000</td><td>0.3%</td><td>513,000</td><td> </td></tr><tr><td>($1M AGI individuals)</td><td> </td><td> </td><td> </td><td> </td><td> </td><td style="background-color: #D9D9D9"> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td style="background-color: #D9D9D9"> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr><td>$2 Million AGI all filers</td><td>$585.3</td><td>$20.5</td><td>$50.1</td><td> </td><td>$80.9</td><td style="background-color: #D9D9D9"> </td><td>0.2%</td><td>268,000</td><td>0.2%</td><td>421,000</td><td> </td></tr><tr><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td style="background-color: #D9D9D9"> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr><td>$2.5 Million AGI all</td><td>$500.6</td><td>$16.4</td><td>$42.6</td><td> </td><td>$69.8</td><td style="background-color: #D9D9D9"> </td><td>0.1%</td><td>196,000</td><td>0.2%</td><td>304,000</td><td> </td></tr><tr><td>filers</td><td> </td><td> </td><td> </td><td> </td><td> </td><td style="background-color: #D9D9D9"> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td style="background-color: #D9D9D9"> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr></table> TAX POLICY CENTER DATA SOURCES Source: Tax Policy Center, Urban-Brookings Microsimulation Model. Analysis prepared forAmericans for Tax Fairness, Sept. 23rd, 2019. Data available at: Table T19-0037: revenue estimates The other tables linked below are used to determine the distribution of the three surtax options shown in the table above: the percentage of tax units and the number of taxpayers affected. The percentage of tax units affected by the surtax is taken from the first page of each table (see “All” under Tax Units with Tax Increase or Cut”). The number of taxpayers affected by the surtax is calculated by applying the percentage of the top 1% subject to the surtax for a given year by the number of tax units in the top 1% for the same tax year.1 This data is available for each of the six tables linked below as either a Download PDF or a Download Excel table on the right-hand side of each linked table. For the PDF version the data is on the second table and for the Excel version the data is in the “Detail” tab. The data is in thousands. For example, in Table T19-0048, 28.4% of the top 1% are affected by the $2 million joint/$1 million individual surtax threshold in 2020. There are 1,160,000 tax units in the top 1% that year. An estimated 329,440 taxpayers will be affected, which is rounded to 329,000 in the table. Table T19-0048: $2 million / $1 million threshold in 2020Table T19-0050: $2 million / $1 million threshold in 2029Table T19-0039: $2 million threshold in 2020Table T19-0041: $2 million threshold in 2029Table T19-0043: $2.5 million threshold in 2020Table T19-0045: $2.5 million threshold in 2029  1. For the $2 million / $1 million threshold in 2029 a small percentage – 0.1% -- of those in the 95th-99th percentile income group would be affected by the surtax in 2029 according to TPC’s distributional analysis. This is a function of how TPC calculates its distributional effects, where it holds constant the distribution of income in 2020 in measuring effects in later years. In other words, those in the 95th-99th bracket in 2020 who are affected by the surtax in 2029 are those who will have seen their income grow to a level that would put them well into the top 1% category in 2029. These taxpayers – approximately 5,000 – have been included in the number affected in 2029.</div>

Estimates Find Millionaire Surtax Would Raise Over $500 Billion

Americans for Tax Fairness

The Tax Policy Center has estimated that a 10 percentage point surtax on taxpayers with adjusted gross income of at least $1 million would raise $500 billion to $634 billion over 10 years, depending the implementation of the tax, Americans for Tax Fairness said in an October 8 release.

The Tax Policy Center has estimated that a 10 percentage point surtax on taxpayers with adjusted gross income of at least $1 million would raise $500 billion to $634 billion over 10 years, depending the implementation of the tax, Americans for Tax Fairness said in an October 8 release.