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Democrats release plan to raise taxes

By sage of monticello | October 25, 2007

Charles Rangel today released his long anticipated plan to raise taxes. Below is some commentary on the plan by several Republican Congressman.

Rep. John Campbell:

The word is that Chairman of the Ways and Means Committee Charlie Rangel (D-NY) will introduce he is calling the “Mother of all Tax Bills” tomorrow.

Rumors are that it will do two good things:
1.) Eliminate the Alternative Minimum Tax (AMT);
2.) Lower the Corporate tax rate from 35% to 30.5%

However, it is also rumored to do many bad things including:
1.) New higher rates for all incomes of $150,000(single) and $200,000(joint);
2.) Repeal many business tax deductions including the LIFO inventories and section 199 manufacturer’s deduction.

This is clearly not the entire bill but one thing is for sure; it will increase taxes by nearly a trillion dollars. I don’t need to explain to you that it will take a lot of taxpayer’s paying a lot more taxes to make up for a trillion dollars.

Ways and Means Ranking Member Jim McCrery (R-LA):

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 U.S. if the Democrats’ bill is enacted.

Topics: socialism, tax policy, wealth redistribution |

One Response to “Democrats release plan to raise taxes”

  1. B. Gwozdz Says:
    October 25th, 2007 at 2:20 pm

    GO RED SOX!!!!!!!

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