Dems: $1T Tax Plan To Aid Middle Class

GOP Opposes Strategy Of Offsetting Tax Cuts With Increases For Other Taxpayers

(AP)  The House's top Democratic tax writer on Thursday unveiled a $1 trillion plan to repeal the alternative minimum tax and lower the tax burden of most lower- and middle-income people.

The proposal would be paid for by requiring the wealthy and some corporations and investors to pay more.

In laying out the plan that would effectively rewrite many of the tax policies put in place under Republican control of Congress, Rep. Charles Rangel of New York said the changes would bring a net tax reduction to almost all families with incomes under $500,000 and that some 91 million families would receive tax relief.

"We have attempted to restore equity and fairness to the system," Rangel said.

The package, introduced by the Ways and Means Committee chairman at a news conference, includes a one-year temporary fix to shield middle-income families who might get hit by the alternative minimum tax and several dozen extensions of specific tax credits now available to teachers, veterans, those with education expenses and others.

The more far-reaching changes in the tax code will probably not come up for a vote in the House until next year, but Democratic leaders have indicated they will move quickly on the stopgap AMT measure and the extensions. Rangel acknowledged difference with the Senate on finding ways to pay for the fix, but he said that 23 million people - one estimate of taxpayers who may be affected by AMT this year - are "going to drive us to provide relief, that's for sure."

Republicans quickly voiced strong opposition to the long-term plan. "This is the largest individual income tax increase in history," Rep. Jim McCrery of Louisiana, Rangel's low-key GOP counterpart on the committee, wrote fellow Republicans. Rangel, he said, "is selling pure snake oil."

Republicans in recent days have prodded Democrats to act on the AMT issue. Treasury Secretary Henry Paulson on Tuesday warned in a letter to Congress that failure to pass an AMT fix soon would expose 21 million taxpayers to the tax, with an average tax increase of $2,000.

The AMT was created in 1969 to ensure that a very small number of wealthy people couldn't use tax breaks or deductions to eliminate their entire tax liability. But the tax was not indexed to inflation, and every year more people are exposed to it. Nearly 4 million taxpayers were subject to the AMT in 2006, and the number is expected to multiply in 2007.

The Rangel proposal would extend for one year the current-law AMT relief for nonrefundable personal credits, at an estimated cost of $47 billion over 10 years.

The permanent repeal of the tax would cost nearly $800 billion over 10 years. That would be offset by applying a replacement tax of 4 percent of married couple income above a certain level, not to be less than $200,000. The tax would be 4.6 percent on income in excess of $500,000, or $250,000 in the case of a single taxpayer. High-income individuals would see a limitation on itemized deductions and a phase-out of deductions for personal exemptions, raising $29 billion over 10 years.

In anticipation of Rangel's plan, Rep. Jeb Hensarling, R-Texas, and other GOP conservatives wrote their colleagues Wednesday urging them to oppose any proposal to raise taxes to pay for the elimination of the AMT. "The correction of tax mistakes should never be offset with tax increases," they wrote.

Democrats are committed to pay-as-you-go rules requiring that ways be found to pay for any spending increases or tax cuts so as not to add to the federal deficit.

The bill also reduces the top corporate marginal tax rate from 35 percent to 30.5 percent, at a cost of $364 billion over 10 years. This would be paid for in part through such measures as repealing the domestic production activities deduction and requiring that U.S. corporations that defer income through controlled foreign corporations also defer the deductions that are associated with this income. The last-in-first-out accounting method would also be eliminated, saving $106 billion over 10 years.

Under the Rangel plan (with costs and new revenues over a 10-year period):

• Married couples filing jointly would be entitled to take an additional $850 as a standard deduction, at a cost of $48 billion.



• The number of lower-income taxpayers qualifying for earned income credit would grow, at a cost of $29 billion.



• The refundable child credit would be increased, at a cost of $9 billion.



• Investment fund managers would be prevented from paying taxes at capital gains rates, raising $26 billion.



• Hedge fund managers would be prevented from using offshore tax haven corporations to defer taxes on compensation received for providing investment services, raising $23 billion.



• There would be mandatory cost basis reporting by brokers for transactions involving publicly traded securities, raising $4 billion.

[speakinup]

"simonsez40 - you really are more of an idiot than I thought. So if the Republicans didn''t have most of the middle class, how would they even APPROACH 50% of the popular vote ? Posted by speakinup

"Your (sic - should be You''re)the idiot depends on what election you are referring too.....if it''''s the Bush/Gore battle then the popular vote has gone to the Democrats.

Democratic candidate Al Gore, the Vice President of the United States, received more popular votes but fewer electoral votes than Republican candidate George W. Bush, the Governor of Texas. The election was held on November 7, 2000. From Wikipedia, the free encyclopedia Posted by simonsez40

Hey simonsez - What part of ''APPROACH 50%'' don''t you understand ? Between the two, Bush got 50,460,110 votes, Gore got 51,003,926 - HOW MUCH CLOSER DOES IT HAVE TO BE TO APPROACH 50% ?

[speakinup]

EXCELLENT point, mudrose.

But, I still contend that this is a pipe dream. Hail, Soros would yank his support so quick, Hillary would look like a top in a hurricane.

[mudrose-2009]

DEMOCRAT - Panders to the mindless whim of the masses. This a$$clown needs to hurry up and assume room temperature!

Posted by Signof4

I suppose he''s going to tax those top 1%. How many are up there 1, 2? Might as well rape them and work their way down to the remaining 10%. Then once they''ve taken every last dime for the ahem Rich, they can then start on the ahem middle class. After all, they would be the next "Rich".

[signof4]

DEMOCRAT - Panders to the mindless whim of the masses. This a$$clown needs to hurry up and assume room temperature!

[simonsez40]

"An aide to the prime minister of Canada called President Bush a moron. Well that''s not fair. Here''s a guy who never worked a day in his life, got rich off his Dad''s money, lost the popular vote and ended up president. That''s not a moron, that''s genius!" %u2014Jay Leno

[simonsez40]

Four more years under Republican Rule? No thank you....

"I saw a poll that said the right track/wrong track in Iraq was better than here in America. It''s pretty *** strong. I mean, the people see a better future." %u2014George W. Bush Washington, D.C., Sept. 23, 2004

"Oh, no, we''re not going to have any casualties." %u2014Bush discussing the Iraq war with Christian Coalition founder Pat Robertson, as quoted by Robertson

[simonsez40]

"I glance at the headlines just to kind of get a flavor for what''s moving. I rarely read the stories, and get briefed by people who are probably read the news themselves." %u2014Washington, D.C., Sept. 21, 2003

"I''m the commander %u2014 see, I don''t need to explain %u2014 I do not need to explain why I say things. That''s the interesting thing about being president." %u2014as quoted in Bob Woodward''s Bush at War

Adding a little humor from George W to your day.......

[speakinup]

yeah - it''s a B*itch hearing those parrots telling the truth, ain''t it UnderMyBoot. Svck it up UnderMyBoot - and you''d better get used to it with a party frontrunner like Hillary. That person can only lie to come up with qualifications.

How many dumbshits believe they will get $5000 per baby ?

OH, or better yet - tax the rich to give to the middle class. Now if there was EVER a devisive scheme to get into office - this is it.

If people don''t like what Bush did, what makes you think they won''t see thru her brand of politics?

She must think yo are STUPID to believe her, or, maybe she is right about you being STUPID.

[simonsez40]

"the END IS NEAR! Posted by simonsez40

Look, simonsez - go stand on your street corner with your sandwich sign - ok, because only dimwits like you believe ''''the end is near''''.


--------------------------------------------------------------------------------

Posted by speakinup

Your the idiot standing up for the dimwit President......it''s a sinking ship so when do you bail?

[simonsez40]

simonsez40 - you really are more of an idiot than I thought. So if the Republicans didn''''t have most of the middle class, how would they even approach 50% of the popular vote ?




--------------------------------------------------------------------------------

Posted by speakinup

Your the idiot depends on what election you are referring too.....if it''s the Bush/Gore battle then the popular vote has gone to the Democrats.

Democratic candidate Al Gore, the Vice President of the United States, received more popular votes but fewer electoral votes than Republican candidate George W. Bush, the Governor of Texas. The election was held on November 7, 2000. From Wikipedia, the free encyclopedia

[speakinup]

"the END IS NEAR! Posted by simonsez40

Look, simonsez - go stand on your street corner with your sandwich sign - ok, because only dimwits like you believe ''the end is near''.

[speakinup]

simonsez40 - you really are more of an idiot than I thought. So if the Republicans didn''t have most of the middle class, how would they even approach 50% of the popular vote ?

[simonsez40]

Posted by One_American at 02:37 AM : Oct 26, 2007
------
Just another neocon parrot (note the repeated squawking) who thinks that, if you say something stupid enough times, Americans can be convinced it is the truth. What a f''''ing moron.


--------------------------------------------------------------------------------

Posted by UnderMyBoot

To all you REPUG arse kissers - then you foot the bill and let us enjoy the windfalls! Why should the middle class bear the brunt while corporations get tax breaks?

The proposal would be paid for by requiring the wealthy and some corporations and investors to pay more.

Go ahead follow your intelligent RIGHT WINGERS off the cliff cuz the END IS NEAR! LOL.

[undermyboot]

Posted by One_American at 02:37 AM : Oct 26, 2007
------
Just another neocon parrot (note the repeated squawking) who thinks that, if you say something stupid enough times, Americans can be convinced it is the truth. What a f''ing moron.

[one_american]

This is yet another trick by the huckster, Charles Rangel (D-NY), who is front-man for the fraudster HILLARY CLINTON (D-NY).

The Democrats plan will tax EVERYONE, AND WE ALL WILL BE THE POORER FOR IT.

And, as the taxes increase, the economy and the governments revenue will go...DOWN.

Is it possible for any Democrat to understand the basics of economics?

[one_american]

This is yet another trick by the huckster, Charles Rangel (D-NY), who is front-man for the fraudster HILLARY CLINTON (D-NY).

The Democrats plan will tax EVERYONE, AND WE ALL WILL BE THE POORER FOR IT.

And, as the taxes increase, the economy and the governments revenue will go...DOWN.

Is it possible for any Democrat to understand the basics of economics?

[one_american]

This is yet another trick by the huckster, Charles Rangel (D-NY), who is front-man for the fraudster HILLARY CLINTON (D-NY).

The Democrats plan will tax EVERYONE, AND WE ALL WILL BE THE POORER FOR IT.

And, as the taxes increase, the economy and the governments revenue will go...DOWN.

Is it possible for any Democrat to understand the basics of economics?

[one_american]

This is yet another trick by the huckster, Charles Rangel (D-NY), who is front-man for the fraudster HILLARY CLINTON (D-NY).

The Democrats plan will tax EVERYONE, AND WE ALL WILL BE THE POORER FOR IT.

And, as the taxes increase, the economy and the governments revenue will go...DOWN.

Is it possible for any Democrat to understand the basics of economics?

[one_american]

This is yet another trick by the huckster, Charles Rangel (D-NY), who is front-man for the fraudster HILLARY CLINTON (D-NY).

The Democrats plan will tax EVERYONE, AND WE ALL WILL BE THE POORER FOR IT.

And, as the taxes increase, the economy and the governments revenue will go...DOWN.

Is it possible for any Democrat to understand the basics of economics?

[one_american]

This is yet another trick by the huckster, Charles Rangel (D-NY), who is front-man for the fraudster HILLARY CLINTON (D-NY).

The Democrats plan will tax EVERYONE, AND WE ALL WILL BE THE POORER FOR IT.

And, as the taxes increase, the economy and the governments revenue will go...DOWN.

Is it possible for any Democrat to understand the basics of economics?