Dems propose tax on millionaires to fund Iraq war vets’ education

WASHINGTON (AP) — House Democrats are proposing a tax surcharge on millionaires to pay for a big increase in education benefits for veterans of the war in Iraq, lawmakers said Tuesday.

The plan, if accepted by rank-and-file Democrats, would clear the way for a vote Thursday on a long-stalled war funding bill that would pay for military and diplomatic operations in Iraq and Afghanistan into next spring.

Conservative “Blue Dog” Democrats blocked a vote last week over Democratic leaders’ attempts to add an additional $51.8 billion over the next decade for veterans education to the $183.8 billion war funding tab. They insisted on finding a way to pay for the new benefit without simply adding to the deficit.

“What we’re talking about is a one-half percent income tax surcharge on incomes above $1 million,” said Rep. Mike Ross, D-Ark., a leader of the Blue Dog group. “So someone who earns $2 million a year would pay $5,000. ... They’re not going to miss it.”

The idea earned support from House leaders at a late afternoon meeting of top Democrats, including Speaker Nancy Pelosi of California.

The new GI Bill would essentially guarantee a full-ride scholarship to any in-state public university, along with a monthly housing stipend, for individuals who serve the military for at least three years.