US Democrat presidential hopeful Hillary Clinton proposes crack down on rich with four per cent tax

James Nickerson
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Clinton is set to announce more policies this week (Source: Getty)

Given that Democrat presidential hopeful Hillary Clinton has pledged not to raise taxes for people earning less than $250,000 a year, it's not surprising she has now proposed a new tax on the rich.

After campaigning on the promise to raise tax on the wealthy, Clinton's proposal will add a four per cent tax to those individuals who make more than $5m a year. It would be applied in addition to any other income tax.

"I want to go further and impose what I call a fair share surcharge on multi-millionaires because right now, we’re behind and we need to get the wealthy and the corporations to pay for their fair share, so I can keep my promise, which is I will not raise taxes on the middle class," Clinton said at a campaign rally on Monday.

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The so-called surcharge would raise $150bn over the course of the next ten years, and would be applied to the wealthiest 0.02 per cent of the population, her campaign said.

Last month Clinton was joined by billionaire investor Warren Buffett, who has endorsed her candidacy and been outspoken in his dismay that the rich can pay a lower tax rate than the middle-classes.

Clinton has expressed support for the so-called Buffet Rule, which would enforce a minimum tax rate of 30 per cent on those who earn more than $1m annually.

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While Clinton is the frontrunner for the Democrat nomination her closest rival senator Bernie Sanders is giving her a tough fight in the key states of Iowa and New Hampshire.

Sanders has made inequality the cornerstone of his campaign and his politics are seen as more left than that of Clinton's.

This week Clinton will announce more tax proposals designed to ensure the wealthy pay their fair share, her campaign has said.

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