CHARLIE THE JOB KILLER
October 26, 2007
Rep. Charles Rangel (D-NY) wants to pass the largest income-tax hike ever, ostensibly to shield the middle class from the Alternative Minimum Tax. What goes unmentioned is that the middle class and poor would lose millions of jobs, says Investor's Business Daily (IBD).
Rangel's plan includes:
- A 4 percent income tax surcharge on adjusted gross income over $200,000 for married couples, rising to 4.6 percent on incomes above $500,000.
- An increase in the capital gains tax rate to 19.6 percent from 15 percent for households pulling in over $200,000.
- A more-than-doubling of the tax on private equity firms' carried interest, from the capital gains rate of 15 percent up to 37.9 percent.
- $9.4 billion more in Social Security and Medicare taxes for those who file via partnership.
- $4.3 billion in new taxes by requiring the reporting of stock purchase prices to the Internal Revenue Service.
- $20.7 billion in new taxes on mergers and acquisitions via amortization rules changes.
Perhaps the worst consequence of Rangel's plan is that it would bring an end to the record breaking revenues the government has been receiving, says IBD:
- Federal accounts are up by $785 billion since the Bush tax cuts, according to the Congressional Budget Office.
- The deficit is down to $161 billion, 1.2 percent of GDP and half the average of the past half-century -- thanks to tax cuts producing more than 8 million jobs in the past four years.
Overall, it would be tempting to accuse Rangel of waging a "class war" on the rich, but the class who would really get hurt is the working class, those who are employed by the people Rangel would hurt, says IBD.
Source: Editorial, "Charlie The Job Killer," Investor's Business Daily, October 26, 2007.
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