AOC’s ‘tax the rich’ dress: Who qualifies as wealthy? And how much are they getting taxed?

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New York Democratic Rep. Alexandria Ocasio-Cortez’s political fashion statement at Monday’s Met Gala caused quite a stir online.

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Ocasio-Cortez attended one of fashion’s biggest nights wearing a Brother Vellies white dress with “Tax the Rich” written in red on the back.

Reactions to the dress of House Democrats were divided between those who called it hypocritical and others who supported the political message. The Met Gala is a special event that includes $35,000 tickets.

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The Congress woman defended her dress in an Instagram post on Monday, writing, “The medium is the message.”

“Now is the time for childcare, health care and climate action for all. Tax the rich,” she wrote alongside a photo of her gown.

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But what exactly does Ocasio-Cortez mean when she “taxes the rich” and who actually qualifies for this taxation?

Powerful or hypocritical?:AOC’s ‘Tax the Rich’ dress at the Met Gala got mixed reactions

On Monday, House Democrats unveiled news proposals aimed at raising taxes richest americans and corporations.

The tax increase is to fund the party’s $3.5 trillion budget reconciliation package. The reconciliation package mainly focuses on social welfare proposals such as health care, child care and education.

The proposals, which would raise $2.9 trillion in revenue, would increase the tax rate from 21% to 26.5% for corporations that have more than $5 million in annual revenue, while reducing it to 18% for those companies. who earn less than $400,000 in revenue.

Tax rates are not unprecedented.

The tax rate for some businesses was 39% in 2017 and President Joe Biden called for a 28% tax rate for corporations.

For higher income earners, the capital gains rate increases from 20% to 25%. Individuals will experience a rate of $400,000; home at $425,000; and married couples at $450,000.

Not that all Democrats are proposing on the rich.

Hopefully Committee on Tuesdays and Wednesdays Democrats will increase the top marginal tax rate on individuals making $435,000 or more from 37% to 39.6%.

Individuals earning more than $5 million a year will face a 3% surcharge.

Most American households will not see a tax increase; The estimated national median family income for fiscal year 2021 is $79,900, well below the $400,000 threshold, According to the Housing and Urban Development Department.

The tax hike will affect less than 1% of households in the US, according to Filing Data from the IRS.

Joe Manchin, DW.Va., of the House Democrats, would need to persuade a swing vote in the upper house to vote for the measures. West Virginia Senator Said he’s protesting for a $3.5 trillion reconciliation package.

Democrats unveil tax proposals for the wealthy, corporations to finance spending packages

Contributions: Charles Trepany, Matt Brown

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