Reid Floats Millionaire Tax To Pay For Jobs Bill

By Janie Amaya 

Senate Majority Leader Harry Reid (D-Nev.) on Wednesday proposed a five percent surtax on those making more than $1 million annually. The tax, he said, would generate $445 billion in new revenue over the next decade, enough to cover the cost of President Obama’s jobs package.

“Independents, Democrats, Republicans and even the Tea Party agree it’s time for millionaires and billionaires to pay their fair share of taxes,” Reid said.

Reid had said Tuesday night that he was measuring ways to pay for the bill after sixteen Senators in his own party expressed reservations over the tax increases proposed by Obama. The list of hikes targeted individuals making $200,000 per year or more, investors earning more than $1 million annually and the oil and gas industry, which receive billions in federal subsidies each year.

Reid’s idea is certain to be rejected by congressional Republicans, but the measure may attract more backing from other Democrats, since it raises the income threshhold subject to the fee.

Sen. Chuck Schumer (D-N.Y.), who joined Reid and Senate Majority Whip Dick Durbin (D-Ill.) at today’s press conference, said the millionaire surtax figures to be more palatable to lawmakers worried about burdening small business owners. In a line sure to be used against Democrats in the coming weeks, Schumer argued that those making less than $1 million a year “are not rich.”

Schumer also said that those opposing the White House’s bill are missing the fact that a new poll out today suggested that Americans have more faith in Obama to create jobs than Republicans.

In terms of when the bill would come up for a vote, Reid said he’ll push for a speedy vote on a currency manipulation bill being debated this week, and then pivot to the president’s plan.

“The plan would invest in things that we need: roads, bridges, dams, water systems, sewer systems; to put construction workers back, to work building and renovating schools,” Reid said. He also touted its provision to extend unemployment benefits for the millions of out-of-work Americans.

Pointing his finger at Senate Minority Leader Mitch McConnell (R-Ky.), Reid said it’s time for Republicans to stop playing partisan games and propose amendments if they disagree with how the bill is paid for.

Republicans, meanwhile, have hinted some support for certain elements of the bill, but none have argued that raising taxes on wealthy taxpayers to cover the cost of the bill is a good idea.

Geoff Holtzman contributed to this story.