Democrats plan to tax you more
...The Democrats have decided that the rich are everyone. Whatever the problem, the Democrats think it can be fixed with tax increases. One thing they cannot repeal is the law of diminishing returns. There is a priced to be paid in the economy whenever taxes are raised, whether it is on the rich or the cigarette taxes on poor blacks. They mostly want to control your life by the tax code and how they reallocate your money to buy votes for their candidates. Call it Control Freakonomics.
The most striking feature of the Mother of All Tax Hikes is that it raises taxes on literally every single taxpayer. In 2001, the Republican-led Congress and the president enacted a sweeping tax cut plan that lowered taxes for every American.
The Pelosi-Rangel plan would eliminate those tax cuts, raising taxes for every single tax bracket and eliminating the new 10 percent rate Congress established specifically to reduce the tax burden on low- and middle-income working families.
And as if that is not enough, the Pelosi-Rangel plan also would reinstate the marriage penalty, which — before Congress began to phase it out in 2001 — punished couples by taxing them at a higher rate than they would have been taxed had they filed individually. Indeed, no family would be protected from the Mother of All Tax Hikes.
How about small businesses, farmers and other job providers?
To begin, the Pelosi-Rangel tax increase would bring the death tax back to life. Since 2001, the death tax — one final bill from Uncle Sam, demanding that the deceased pay a tax on property left behind — has been gradually phased out until its elimination in 2010.
Rather than permanently killing the death tax, however, the Pelosi-Rangel plan revives it. The death tax is particularly harsh on small businesses and family farms, and by bringing it back, Congress is placing a target squarely on the backs of these critical job providers.
That’s because resources that could be used to expand a business or hire new employees are instead used inefficiently to plan for the effect of the death tax. In fact, the Heritage Foundation estimates that the tax costs our economy between 170,000 and 250,000 jobs annually.
Small businesses would not only suffer the effect of the death tax, but many also would be hit with a new “surtax” on top of standard taxes already paid to Washington and would lose a key manufacturing tax deduction that reduces their annual tax bill.
Indeed, for businesses large and small, under the Pelosi-Rangel plan, our nation would be placed at a competitive disadvantage against global counterparts that have fairer, simpler tax structures.
And the record job creation we have seen over the past four years — 8.1 million new jobs since August 2003 — would be brought to a screeching halt. Simply put, the Pelosi-Rangel tax increase would be a job killer.
E.J. McMahon thinks Charlie Rangel must have something against his home town of New York because people in that city may be hardest hit by his higher taxes.