Alexandra Ocasio-Cortez’ 70 Percent Tax Rate: What it Means?
Rep. Alexandria Ocasio-Cortez Opens a New Window. has shaken up the political world in the months since she’s been elected. From her views on capitalism Opens a New Window. to her calls for a Green New Deal Opens a New Window. , the New York City native has quickly become one of the best-known members of the Democratic Party.
One of her most controversial proposals has been a 70 percent marginal tax on taxpayers’ income above $10 million. The tax rate is more a talking point or opening offer for now, but it shows where some elected officials want to push rates in the era of trillion-dollar deficits.
If this change in tax policy were to eventually happen, how could investors position their portfolio to minimize the impact?
How likely are higher taxes?
Let’s first clarify what Ocasio-Cortez’s proposal means. She’s proposed taxing a filer’s income above the $10 million level at a 70 percent rate. So only income above that amount would be taxed at this higher rate, not all a taxpayer’s income.