Surtax - United States

United States

Previous examples of a broadly-levied surtax in the United States include one imposed to help finance the Vietnam War during the Lyndon B. Johnson administration. It essentially consisted of calculating one's ordinary federal income tax liability and then adding another 10% to it—the amount of the surtax.

As the U.S. income tax system at that time was highly progressive, the surtax was much higher on those with higher incomes, as a 10% surtax imposed on a tax rate of 20% would result in an overall rate of 22%, while the same surtax imposed on a rate of 50% would result in an overall rate of 55%.

Some anti-war protesters refused to pay this tax, stating that while they were not anarchists and understood the need for and positive role played by government in many areas, they wanted none of their tax money going to a war that they felt was immoral. The surtax was repealed well before the war ended in Vietnam.

Surtaxes can be imposed on other taxes. They are usually imposed on the grounds of moral justification; they only affect persons who are already paying taxes rather than extending taxation to new areas or persons who are not previously being taxed.

A surtax of 4.3 percent was recently proposed on incomes over $500,000 by Congress to alleviate the alterations to the Alternative Minimum Tax code in the United States.

A surtax was proposed as part of the 2009-2010 health care reform in the United States.

Read more about this topic:  Surtax

Famous quotes related to united states:

    God knows that any man who would seek the presidency of the United States is a fool for his pains. The burden is all but intolerable, and the things that I have to do are just as much as the human spirit can carry.
    Woodrow Wilson (1856–1924)

    An alliance is like a chain. It is not made stronger by adding weak links to it. A great power like the United States gains no advantage and it loses prestige by offering, indeed peddling, its alliances to all and sundry. An alliance should be hard diplomatic currency, valuable and hard to get, and not inflationary paper from the mimeograph machine in the State Department.
    Walter Lippmann (1889–1974)

    In the United States all business not transacted over the telephone is accomplished in conjunction with alcohol or food, often under conditions of advanced intoxication. This is a fact of the utmost importance for the visitor of limited funds ... for it means that the most expensive restaurants are, with rare exceptions, the worst.
    John Kenneth Galbraith (b. 1908)

    I feel most at home in the United States, not because it is intrinsically a more interesting country, but because no one really belongs there any more than I do. We are all there together in its wholly excellent vacuum.
    Wyndham Lewis (1882–1957)

    I have ever deemed it fundamental for the United States never to take active part in the quarrels of Europe. Their political interests are entirely distinct from ours. Their mutual jealousies, their balance of power, their complicated alliances, their forms and principles of government, are all foreign to us. They are nations of eternal war.
    Thomas Jefferson (1743–1826)