Top Tax Rate on Personal Income Would Be Among Highest in OECD under Ways and Means Plan by Alex Durante, William McBride published by Tax Foundation (10/2021).
“Under the House Build Back Better Act, the average top tax rate on personal income would reach 52.3 percent, tying Sweden as the 9th highest rate in the Organisation for Economic Co-operation and Development (OECD).
The House Build Back Better Act would raise the top federal marginal tax rate on ordinary income from 37 percent to 39.6 percent. High-income taxpayers would face an additional 3 percent surcharge on income in excess of $5 million. Finally, the plan would redefine the tax base to which the 3.8 percent net investment income tax (NIIT) applies to include the “active” part of pass-through income, such that all income above $400,000 (single filer) or $500,000 (joint filer) would be subject to tax of 3.8 percent due to the combination of NIIT and Medicare taxes. Overall, the top marginal tax rate on personal income at the federal level would rise to 46.4 percent…”
