“Mother of All Tax Hikes” Bill




 
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October 25th, 2007  
Tsunami
 
 

Topic: “Mother of All Tax Hikes” Bill


My Friends,


At a bipartisan Ways and Means caucus last night, Chairman Rangel outlined his long-awaited “Mother of All Tax Hikes” legislation. The basics of the package are simple: This is the largest individual income tax increase in history.

The bill will add a 4% surtax on Americans earning more than $150,000 a year ($200,000 for couples). That is on top of the scheduled expiration of the 2001 and 2003 tax cuts. So, under Democrats’ plan, over the next few years, the individual income top tax rate in the United States will rise from 35% to 44%. By way of comparison, the other 29 Organization for Economic Co-operation and Development countries – basically other developed nations - have an average top marginal tax rate of 35.7%. In fact, only five OECD countries would have higher top marginal tax rates in 2011 than the United States if the Democrats’ bill is enacted.
This crushingly high tax rate will affect approximately 10 million taxpayers directly - including those who report business income, like small business owners and farmers - but the damage will ripple throughout our economy. Because small businesses and family farms often pay their income taxes as individuals, this is a massive tax hike on the engine that drives job growth in this country.
In addition, the surtax is on adjusted gross income, not taxable income. This sounds like a technical issue, but it means that Rangel’s bill will erode the value of a series of tax deductions – including for mortgage interest, charitable giving, medical expenses, state and local taxes, and the standard deduction. And, because the surtax kicks in at $150,000 for individuals and $200,000 for couples, the bill creates a monster of a marriage penalty.
Chairman Rangel will claim that these tax increases go to provide tax cuts to 90 million Americans, but he is selling pure snake-oil. Many if not most of those taxpayers are getting a purely imaginary “tax cut.” Some of them are the roughly 20 million people that Republicans shielded with the Alternative Minimum Tax patch. Millions more are people who have benefited from the 2001 and 2003 tax cuts, and only get “tax cuts” if you assume that the 10% bracket, marriage penalty, and $1,000 per child tax credit will expire. Others, like single people who will now be eligible for the Earned Income Tax Credit, are getting a tax refund from the government even though they don’t actually pay income taxes.
It will take time to analyze this bill and sort through the data, but we know from the start that the 90 million figure is pure hokum. In fact, before you know it more taxpayers may wind up paying higher taxes – and fewer paying less - under Rangel’s plan than they did last year.
Which brings us to the larger fallacy of the Democrats’ “paygo” system. There is no need to “pay for” protecting taxpayers from a massive AMT tax hike. The government never meant for the AMT to affect middle-class Americans, and we have a responsibility to make sure it doesn’t. By arguing that preventing this tax increase requires us to raise taxes elsewhere, Democrats are trying to lock Congress into a system where we are guaranteed to raise taxes by $3.5 trillion over ten years. That’s right. $3.5 trillion. The baseline that the Democrats are using for “paygo” includes revenue from an “un-patched” AMT and from the tax increases that occur when the 2001 and 2003 tax laws expire after 2010. Together they total $3.5 trillion over ten years. If we play by the Democrats “paygo” rules, that is the size of the tax increase we are imposing on the American people. That will hurt our nation’s competitiveness and cost us American jobs. The Rangel bill is the first step down a road none of us want to follow, and I urge you to oppose it strongly.
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Preview for those of you who want to know what it will be like w/ the Dems in control!
When we work one out of every five days to pay taxes as is, and then were faced with another tax hike...
It's time to throw these theives out of office.

October 25th, 2007  
mmarsh
 
 
When Clinton left office in 2000 the Deficit was at $4.5 Trillion. Today it at over $9 Trillion. That massive increase of debt was due to 2 things The Bush Wars, and the 2001 and 2003 and The Bush Tax Cuts. And before you even attempt to blame the Dems, it was the GOP congress that passed those bills.

Exactly 1/3 of the 2003 Bush Tax Cut went to the Wealthest 1% of the population.

http://query.nytimes.com/gst/fullpag...5BC0A9629C8B63


I noticed you didn't post your source, mind if I do?

http://www.latimes.com/business/la-f...ack=crosspromo

Democrat rolls out tax overhaul plan

Rep. Rangel's package would boost taxes on some of the nation's wealthiest people, including super-rich financial executives, and provide relief for 90 million households earning less than $400,000.


WASHINGTON -- The lead tax architect in Congress today unveiled a sweeping package of cuts and increases, which could become the blueprint for the Democrats' initiative to overhaul the tax code with the majorities they hold in the House and Senate.

The planwould reverse the trend of the President Bush years by boosting taxes on some of the nation's wealthiest people, including super-rich financial executives. It would provide tax relief for 90 million households earning less than $400,000, with targeted breaks aimed at moderate- and lower-income families.

It would also eliminate the Alternative Minimum Tax, a measure designed to ensure that the rich pay at least some taxes, but which could lead to bigger tax bills for many middle-class families.

And in at least one departure from Democrat stereotypes, it would reduce the corporate income tax, a measure also recommended by the White House, and extend a range of tax breaks sought by businesses.

"We have attempted to restore equity and fairness to the system," said Rep. Charles B. Rangel (D-N.Y.), chairman of the House Ways and Means Committee, whose plan would pay for tax relief by wiping away various provisions enjoyed by business and investment firms.

"People are working longer than ever before," he said, pointing to concerns that many middle-class families struggle with financial insecurity, even as the economy has grown and created an elite class of investors and entrepreneurs. "Couples are working longer than ever before, and they are not receiving the benefits of existing tax cuts" because of costs for housing, education and healthcare.

The proposal is the starting gun in a debate that will rage in the House in the months ahead -- including within the Democratic Party -- and into the general election campaign next year.

Business lobbyists and Republican lawmakers oppose much of the plan, and today assailed it as a giant tax hike. Moreover, it was not clear how much support Rangel can count on from influential members of his own party, who are loathe to antagonize well-heeled interests as an election-year dawns.

At the same time, Rangel, a liberal New Yorker, controls the House's official tax-writing panel, and his priorities are certain to help reshape a national debate on tax fairness, following more than a decade of Republican domination that featured an emphasis on tax cuts and business-friendly tax breaks.

"It's an incredible opportunity" to use a tax initiative to address inequities in the economy, said Rep. Mike Thompson (D-Napa), a member of the Ways and Means Committee. "I think it will provide a good juxtaposition of what we are trying to do versus what they did. They had six years of irresponsible government. This is a chance for us to turn that around."

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.

House Speaker Nancy Pelosi (D-San Francisco) said today that she personally supported Rangel's plan. But Pelosi acknowledged that the sweeping proposal to fundamentally reform the tax system would probably be debated heavily even within Democratic ranks.

"Folks in our caucus will have the usual dynamic give and take on the subject," Pelosi said.

Republicans on Capitol Hill have been gearing up to challenge Rangel's proposals, labeling it the "mother of all tax hikes" even before Rangel unveiled it. And several GOP leaders seemed eager to face off with their Democratic rivals over taxes.

"It will be an important debate that really highlights the differences between the Republican vision of innovation, competitiveness, low taxes, low burdens ... versus one that pits Main Street against everyone else and sets up this situation of class warfare," said Florida Rep. Adam Putnam, the No. 3 Republican in the House.
October 25th, 2007  
Tsunami
 
 

Why do liberals dismiss 9/11?
It's as if it never happened, nor the speaches that followed...
But I guess I am arguing with sombody that likely believes Bush was behind the whole 9/11 tragedy, right?
Whatever you argue - liberals = tax increases. There are no two ways around it...
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October 25th, 2007  
mmarsh
 
 
Quote:
Originally Posted by Tsunami

Why do liberals dismiss 9/11?
It's as if it never happened, nor the speaches that followed...
But I guess I am arguing with sombody that likely believes Bush was behind the whole 9/11 tragedy, right?
Whatever you argue - liberals = tax increases. There are no two ways around it...

Why are you changing the subject? The subject thread was the The Tax Overhaul Plan not 9-11. You wouldn't be attempting to Dodge the question would you?

Let me explain something to you as you are new. This site isn't the Free Republic where only the Bush-bots are allowed. This site has both Republicans and Democrats on it. You push your Bush propaganda here without posting sources and you are going to get hammered by people here. I would suggest you come better prepared.
October 25th, 2007  
Del Boy
 
Question - how comes any semblanceof support of the American president becomes 'Bush propaganda' here ?? I have noticed this phenomenon occurring regularly.
October 25th, 2007  
Tsunami
 
 
No country bashing. No flaming Keep it Civil.


03
October 25th, 2007  
mmarsh
 
 
Quote:
Originally Posted by Del Boy
Question - how comes any semblanceof support of the American president becomes 'Bush propaganda' here ?? I have noticed this phenomenon occurring regularly.
There are signs.

1. Repeating the same old talking points over and over again, but never wanting to discuss them in depth. Attempting to change the subject.
2. Only using sources from overtly bias sources or not using any at all.
3. Always blaming the other side for everything, accepting no responsibility even for the most obvious of mistakes.
4. Rudeness, Sarcasm, Nastiness, personal attacks. Is a big tip-off. See above.
5. Use of words like Communist and Socialism as the global excuse, without really understanding what these terms actually mean.

You get a couple posts that fit these rules and you know what your dealing with.

Tsunami

Yawn. I am still waiting for you to try and defend the Bush taxcuts of 2001 + 2003. This Overhaul bill reverses those taxcuts, that was the subject right? I only mentioned to deficiets because its the reason we need to raise taxes. If you think its bad obviously that means you still support the tax cuts and the disastrous effect its had on us. But instead of this you have descended into Personal attacks now. Its clear you are never going to continue the original subject, but just randomly bash democrats and/or me. I don't do flame-wars so am going to bed. Very bored.

Let me know the day when you actually want to debate something.
October 25th, 2007  
Tsunami
 
 
Go back and examine your five points - how do they relate to "Mother of All Tax Hikes?" Better yet - review your five points and see if they don't relate to the very party you support in this forum.
==
Back on topic -
Anybody want to take a guess when the current income tax came about and what it was intended for? Was it meant to be permanent or temporary?


Mod Edit: You are headed down the wrong path with the insults. You are advised to go back and read the ROE's.

03USMC
October 25th, 2007  
senojekips
 
 
Quote:
Originally Posted by Tsunami
Keep drinking your French wine and eating you French bread - you responded to my original post by citing the increase in the federal deficit and I suppose a link to why we need to raise taxes...
Yet, like most socialists you fail to see the indicators of why the deficit is where it is... In addition - your socialist party seems to think the tax system is an open check book where they are better equipped to spend my hard earned money than I am...
By the way - I am not expecting you to be a BUSH-Bot, I am just expecting a little commonsense. In addition - liberals have a special place in my toilet, without them we wouldn't have a market place for ideas!
I ask in all seriousness, are you phoenix80?

If not, your style of evasion of the questions of others, and personal abuse of those who raise legitimate points is identical.
October 25th, 2007  
Infern0
 
phoenix? is that you?



i already miss the two weeks of respect and decent discussion....seems that is being pissed away by our new batch of trolls
 


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