Senator Reid Proposes Surtax on Earners of More Than $1 Million

On October 17, 2011, Senate Majority Leader Harry Reid proposed a 0.5 percent surtax on people (whether single filers or married couples filing jointly) with modified adjusted gross incomes of $1 million a year, through the Teachers and First Responders Back to Work Act.  Pursuant to the Act, the  surtax would completely cover the $35 billion that the Act would provide to "create or protect nearly 400,000 education jobs, while preventing the layoffs of thousands of cops and firefighters."  If passed, the surtax would be effective for the 2013 tax year onward. See also Reid Proposes 0.5 Percent Surtax on Millionaires to Pay for Teachers, First Responders, 2011 TNT 201-1, October 18, 2011.