Increase income tax rates on income over $500,000
The 2017 Tax Cuts and Jobs Act reduced income tax rates for all income levels. These cuts are expiring. There is debate about whether to extend them for all incomes, or only for incomes below certain thresholds. Extending the cuts for high incomes would cost about $266 billion in reduced revenue over 10 years.
Arguments For & Against
Pro Argument
For the economy to grow, it is important to reduce tax rates. There have been numerous cases when taxes were cut and the economy grew. High taxes are holding back businesses from growing and creating more jobs. Lower tax rates will energize the economy and free up the natural vitality of our system.
Con Argument
Over the last several decades, the wealth of most Americans has barely grown at all, even though workers have become far more productive. Meanwhile, the wealth of those in the top brackets has grown enormously, so the top 1% now has more wealth than the entire bottom 80%. Taxes on upper incomes have been cut and are far lower than they were decades ago. It is only fair that the wealthy pay a greater share.
Source document: FedBudget2025Quaire.pdf
| Type | Organization | Date | Nat | Rep | Dem | Gap | Metric |
|---|---|---|---|---|---|---|---|
| New PPC Survey (2026) | Program for Public Consultation | February 2026 | 60% | 54% | 67% | 13% | other |
| New PPC Survey (2026) | Program for Public Consultation | February 2026 | 60% | 55% | 69% | 14% | other |
| Deliberative Survey | Program for Public Consultation | June 2025 | 58% | 53% | 64% | 11% | other |
Program for Public Consultation — February 2026
For households with income of $500,000 to $1 million, the effective income tax rate (the actual average rate after tax credits and deductions) is currently about 25%. Do you favor: Raising it to 30% (increases revenue $80B) Raising it to 28% (increases revenue $48B) Keeping it at 25% Lowering it to 23% (reduces revenue $32B) Lowering it to 21% (reduces revenue $64B).
Program for Public Consultation — February 2026
For households with income of $1 million and over, the effective income tax rate (the actual average rate after tax credits and deductions) is currently about 27%. Do you favor: Raising it to 31% (increases revenue $139B) Raising it to 29% (increases revenue $73B) Keeping it at 27% Lowering it to 25% (reduces revenue $66B) Lowering it to 23% (reduces revenue $132B).
Program for Public Consultation — June 2025
We will now give you the option to change the effective tax rate for different income groups…
Related Policies
Tax capital gains at the (higher) ordinary income rate for income over $200,000
64% national support
Adopt a tax of 2% on wealth over $50 million, and 3% over $1 billion
80% national support
Maintain or increase the estate tax
81% national support
End the special tax rate for carried interest
73% national support