House Ways and Means Committee Chairman Charles Rangel (D-N.Y.) said that lawmakers would use a tax on the wealthiest Americans to help pay for a $1 trillion overhaul of the U.S. healthcare system.
“We have decided that instead of putting pieces of different revenue-raisers together, that the best that we can move is” a graduated surtax, starting with households that make $350,000, $500,000 and $1 million, Rangel told reporters on Friday.
Each income group would be taxed between 1% to 3%, though details remain unclear.
The tax plan would yield about $540 billion over the next decade in new revenue, he said. Those dollars would be coupled with predicted savings in the Medicare and Medicaid program to pay for most of the comprehensive bill, which is expected to be released on Monday.
The House had considered a range of tax options, including ones that would raise the price tags on sugary drinks and alcohol, but in the end chose to tap the nation’s higher earners to help defray costs.