October 25, 2007

Rangel's tax bill : EXCELLENT WORK

FINALLY, the Democrats roll out a great tax bill that fixes the AMT, closes corporate loopholes (while dropping corporate rates a little to keep job growth good) and fairly distributes the tax burden by cutting taxes on the middle class and raising them on the rich and super rich.

Under the plan unveiled today, tax burdens would be altered through an array of changes affecting ordinary households and businesses. Some of the highlights:

* Eliminate the Alternative Minimum Tax. This proposal is intended to prevent the AMT from hitting 23 million households this year. The AMT was imposed in the late 1960s to make sure that the wealthiest Americans paid at least some tax, but it has applied to a growing number of households because it is not indexed for inflation. Given the difficulty of passing his overall plan, Rangel plans to move forward with a short-term bill to defuse the AMT for this year.

* Impose a surcharge on higher-income people. The most affluent taxpayers, earning at least $200,000 for couples filing joint returns, would face a new surcharge of 4%, moving up to 4.6% for those earning over $500,000.

* Reduce the corporate income tax. The top rate for the corporate income tax would fall from 35% to 30.5%, a move supported by the Bush administration to enhance U.S. competitiveness. At the same time, the plan would seek to end a range of provisions that Rangel views as loopholes.

* Ease burdens for working families. To accomplish this, the plan would increase the standard deduction, make the Earned Income Tax Credit for the working poor more generous, and increase the amount of the refundable child tax credit.

* Increase taxes for managers of private-equity funds, the investment pools that often buy publicly traded companies and take them private. Executives of these funds have claimed earnings at a 15% capital gains tax rate, rather than the 35% they might otherwise pay for ordinary income. Rangel said today that such favorable treatment was not justified.

Stick with this plan, Democrats. Across the board. No one listens to the Republicans tax policies. Why? Because they are all geared toward income stratification (concentrating money with the richest Americans). Further, we have got to start paying the debt and reining in future deficits which are about to balloon back up because of the Bush tax cuts. It's the only way to secure the long term future of the United States.

Now we'll be able to talk about infrastructure improvements and securing entitlement programs, two things that'll help the economy and business more than a tax cut.

Fantastic job, Congressman Rangel!

Posted by mcblogger at October 25, 2007 01:21 PM

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