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 The surtax was repealed well before the war ended in Vietnam.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:

    I incline to think that the people will not now sustain the policy of upholding a State Government against a rival government, by the use of the forces of the United States. If this leads to the overthrow of the de jure government in a State, the de facto government must be recognized.
    Rutherford Birchard Hayes (1822–1893)

    Why doesn’t the United States take over the monarchy and unite with England? England does have important assets. Naturally the longer you wait, the more they will dwindle. At least you could use it for a summer resort instead of Maine.
    —W.H. (Wystan Hugh)

    The white American man makes the white American woman maybe not superfluous but just a little kind of decoration. Not really important to turning around the wheels of the state. Well the black American woman has never been able to feel that way. No black American man at any time in our history in the United States has been able to feel that he didn’t need that black woman right against him, shoulder to shoulder—in that cotton field, on the auction block, in the ghetto, wherever.
    Maya Angelou (b. 1928)

    A sincere and steadfast co-operation in promoting such a reconstruction of our political system as would provide for the permanent liberty and happiness of the United States.
    James Madison (1751–1836)

    So here they are, the dog-faced soldiers, the regulars, the fifty-cents-a-day professionals riding the outposts of the nation, from Fort Reno to Fort Apache, from Sheridan to Stark. They were all the same. Men in dirty-shirt blue and only a cold page in the history books to mark their passing. But wherever they rode and whatever they fought for, that place became the United States.
    Frank S. Nugent (1908–1965)