2% tax on income over $1 million.

A **2% tax on income over $1 million** is exactly what it sounds like: an additional tax applied only to the portion of an individual’s income that **exceeds $1 million**. Here’s a quick breakdown:

—

### 🔢 **How It Works (Simplified):**

– **Income:** $1,200,000
– **Taxed Amount:** $200,000 (only the portion over $1M)
– **2% Tax:** $200,000 × 0.02 = **$4,000 extra tax**

—

### 🧠 What This Is Often Called:
– A **surtax** (extra tax on top of regular income tax)
– A **marginal tax** increase (applied only to dollars *above* a threshold)
– Sometimes part of a **wealth tax package**, though it targets **income**, not **assets**

—

### 🏛️ Why Governments Propose This:
– Raise revenue from high earners without affecting middle/lower classes
– Fund programs (healthcare, infrastructure, education, etc.)
– Politically palatable: most voters don’t earn $1M+

—

### 💬 Critics Say:
– Could discourage entrepreneurship or investment
– Might lead to tax avoidance/evasion or income-shifting
– “Class warfare” rhetoric sometimes follows

—

### 🤔 Real-World Examples:
– **California** has a mental health tax: **1% on income over $1M**
– **Joe Biden’s 2024 budget proposal** included similar ideas—targeting ultra-high income earners with modest surtaxes

—

Want to model how this impacts national revenue or individual taxpayers? Or explore what happens at different thresholds (e.g. $500K, $5M)? I can run some scenarios.