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LWW
10-25-2007, 09:10 AM
OOPS! (http://republicans.waysandmeans.house.gov/News/PRArticle.aspx?NewsID=133)

[ QUOTE ]
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 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 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.<hr /></blockquote>

LWW

Drop1
10-25-2007, 09:34 AM
I will wait until the ink dries, I really want to see how mortgages will be affected. Then again,we have to ask,will their be enough money for Bush´s war.

eg8r
10-25-2007, 11:19 AM
This is the democratic way...Don't cut any spending (even if you don't agree with it), divert all military spending to social projects, and raise taxes. This is just the beginning.

eg8r

cushioncrawler
10-25-2007, 08:59 PM
<blockquote><font class="small">Quote LWW:</font><hr>...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...<hr /></blockquote>I have good newz. Global competitiveness haz zero (uzually) to do with taxes and public holidayz and pay inkreecez etc etc. Global competitiveness for any one industry in the USA depends on....
(1) the comparative advantage (proportional advantage) that that industry enjoys (ie its efficiency compared to the average efficiency of all USA industries) and..
(2) the value of the USA dollar compared to the value of the other country'z dollar.

But wait, there'z more.... The total and individual share of the tax burden on USA rezidents dependz on the amount that the gov spendz, not on what it collects.

But there'z more...... The real burden dependz on what and how the $$$ are spent (or wasted).

But, the biggest and most important burden(z) are the onez that will affekt future americanz, not some prezent suppozed burden. madMac.

Drop1
10-25-2007, 09:26 PM
Mac,you might be right,but I can buy a car made in Mexico,for five thousand dollars less in the U.S.,than I can buy the same car in Mexico,and the car was made in Mexico.

cushioncrawler
10-25-2007, 10:40 PM
<blockquote><font class="small">Quote Drop1:</font><hr>Mac,you might be right,but I can buy a car made in Mexico,for five thousand dollars less in the U.S.,than I can buy the same car in Mexico,and the car was made in Mexico.<hr /></blockquote>Harry -- What with tariffs, import duty, subsidyz, sales-tax, industry tax releef, quotas etc etc -- not to mention monopolyz and price-fixing etc etc -- all (good) economic theory sort of goze out the window. madMac.

LWW
10-26-2007, 04:23 AM
Yer funnee.

LWW