House Democrats planning surtax on high income: report

NEW YORK (Reuters) - House Democrats are proposing a surtax on high-income earners as a way to fund an expansion of education benefits for veterans, the Wall Street Journal said on Wednesday.

Under the proposal, a surtax of 0.5 percent will be levied on couples earning more than $1 million a year, and individuals earning more than $500,000 a year, the Journal said, citing Democratic aides.

The proposal, which could come up for a House vote as soon as Thursday, could raise about $54 billion over 10 years, just more than the amount required to fund the spending on veterans, the report said.

The Journal added that it is unlikely the proposal would make its way through the Senate and that President George W. Bush would likely veto it.

Officials could not be reached immediately for comment.

(Reporting by Aarthi Sivaraman; editing by Stephen Nisbet)