U.S. May Raise Taxes on Millionaires – How Does SA Compare?

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In the United States, lawmakers are talking about creating a new 40% tax rate for people who earn more than $1 million a year. This would help pay for new tax changes planned before the end of 2025, when some earlier tax cuts are set to expire.

This is a big shift for the Republican Party, which has usually opposed any tax increases. But under Donald Trump, the party is now considering ideas that would ask the wealthiest Americans to contribute more.

🧾 How Does South Africa Compare?

South Africa already has a higher tax rate for top earners. Anyone earning more than R1.8 million a year pays 45% tax – that’s more than both the current and proposed top U.S. rates.

👩‍💼 Why this matters for us?

This could also signal a global shift in how governments tax high earners – something to watch in South Africa too. Business owners using pass-through entities (like partnerships or LLCs) may also face new rules on how their income is taxed.

Source: Accounting Today