House Democrats plan to pay for a sweeping health care overhaul by boosting taxes on the wealthy.
The taxes will hit households with incomes of $350,000 a year and above.
Ways and Means Committee Chairman Charles Rangel of New York said the tax would raise $540 billion over 10 years.
In combination with cuts to Medicare and Medicaid that would pay for a comprehensive health bill in the range of $1 trillion.
Rangel told reporters of the decision after a day of meetings on President Barack Obama's top domestic priority.