Rangel Tax Plan: Depends on Which Ox is Getting …

By October 26, 2007Taxation

A variety of stories and commentary on the Tax Reduction and Reform Act unveiled yesterday by Ways & Means Chairman Charles Rangel. Politics comes into play.

  • Los Angeles Times: “Democrat vows equity in tax plan“:
    WASHINGTON — The lead tax architect in Congress on Thursday unveiled a sweeping package of cuts and increases, which could become the blueprint for the Democrats’ initiative to overhaul the tax code and restore what party members view as fairness in the U.S. economy.

  • San Francisco Chronicle: “GOP, Silicon Valley oppose plan to overhaul alternative minimum tax“:Washington – — A plan released Thursday by the top House tax writer to shield 25 million taxpayers – nearly a fifth of whom live in California – from the dreaded alternative minimum tax quickly met boos from Republicans and howls from Silicon Valley, even as time is running out this year to prevent the tax from clobbering a wide swath of upper-income taxpayers.

    California is the fourth-highest-paying state under the so-called AMT, enacted in 1969 to prevent 155 wealthy individuals from escaping taxes.

  • New York Post: “Charlie Slaps New York” (editorial):
    October 26, 2007 — House Ways & Means Committee Chairman Charles Rangel yesterday dropped a 500-page-plus bomb on New York – a $3.5 trillion tax bill.

    The Harlem Democrat calls it “the mother of all tax reform,” and it has its merits. But, on balance, it’s bad news for the Big Apple.

  • Bloomberg: “Republicans Welcome Rangel’s Tax Bill as Election-Year `Gift'”:
    Oct. 26 (Bloomberg) — House Ways and Means Committee Chairman Charles Rangel has dropped a political bomb that Republicans say may derail his fellow Democrats’ pre-election momentum.

    Rangel yesterday offered a sweeping tax overhaul, which he dubbed “the mother of all reforms.” The proposal would raise taxes on higher-income families and some businesses, while cutting bills for the working poor and lowering the corporate rate. Republicans accused Rangel and his party of trying to raise taxes by more than $1 trillion.

  • CQ Politics:Republicans Eye 2008 and Ratchet Up the Rhetoric on Rangel’s Tax Plan“:
    House Minority Whip Roy Blunt received what he considered a gift on Thursday morning: a ready-made GOP talking point, courtesy of Ways and Means Chairman Charles B. Rangel.

    And Blunt was grateful.

    “Very seldom in politics do your opponents give you this kind of gift,” said Blunt, R-Mo., who proceeded to attack Rangel’s $1.3 trillion tax package (HR 3970), offering a preview of a GOP campaign theme about tax-and-spend Democrats.

    The proposal embodies Democratic tax priorities but is complex and unlikely to become law. Democrats constructed the bill to bolster their philosophy of tax fairness: to repeal the alternative minimum tax (AMT) and add provisions to ensure that more than 90 million taxpayers benefit while fewer than 2 million receive tax increases.

  • More throughout the day …

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