Former Governor Lincoln Chafee (D-RI) has proposed adding a new tax bracket for people making over $750,000. The tax rate for that bracket would be 45%. Currently, the highest tax bracket pays an initial rate of 39.6%.
Chafee, who’s presidential run has failed to gain traction, is making a big push on income inequality. Income inequality is a top issue on the left, although Senator Bernie Sanders (VT) has also made it his top issue. Sanders is currently second nationally in the Democratic side.
“We need to address income inequality in this country,” said Chafee. “This proposal does just that and would move us closer to the tax code generally applicable in industrialized European countries.
Chafee also announced his desire to bump the tax rate for preference income on people making over $750,000 to 25%. Currently it is 20%.