House Ways and Means Committee chairman Charles Rangel has introduced his "Mother of all reforms" to the tax code. The "reforms" will cause a devastating tax hike.
As expected, Rangel’s proposal would eradicate the alternative minimum tax — a levee expected to hit 24 million middle- and upper-income Americans this year — and cut the top corporate tax rate from 35 percent to 30.5 percent. It would also expand the child tax credit, standard deduction and earned income-tax credit for low-income families.
The costs will be offset by a 4 percent surtax on taxpayers earning more than $150,000 a year — $200,000 for couples — and by closing various corporate tax “loopholes.”
Another $48 billion will be raised by increasing taxes paid by hedge funds, venture capitalists, private equity managers, and other types of partnerships will also increase from 15 percent to 35 percent and limiting the executives’ ability to defer compensation tax-free offshore.
Congressional Republicans and the White House oppose the tax hikes. And House Republicans shot back immediately calling the bill the “mother of a tax hikes” and “one bad mother.”
“This crushing 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,” said Rep. Jim McCrery of Louisiana, the ranking Republican on the Ways and Means Committee.
This is a $1 trillion dollar tax bill.
