The NTU reports Count Rangula's claim that "91 million families" will
benefit from his tax scheme, but that number includes a spending giveaway to
millions receiving the Earned Income Credit, which are households that
currently pay no taxes. Count Rangula is playing the familiar liberal
Democratic class warfare game, which punishes the productive while
subsidizing the nonproductive (but able-bodied).
According to The Heritage Foundation's J.D. Foster, there are a few "roses"
in the proposed legislation. Among them is a reduction in the corporate
income tax rate from the current 35 percent to 30.5 percent. It needs to be
lower, because the U.S. corporate tax rate is among the highest of the
industrialized nations and high tax rates hurt the ability of American
businesses to compete internationally. But the proposed lower rate is at
least a move in the right direction.
Count Rangula's fangs come out when he proposes a 4 percent surtax on
married filers with adjusted gross incomes (AGIs) above $200,000 (4.6
percent for higher earning taxpayers). While recognizing the benefits of
lower corporate tax rates, he simultaneously proposes rate increases for
individuals and small businesses. And the surtax applies to AGI, not taxable
income.
There's plenty more not to like and more thorough analyses will be
forthcoming when details of the measure have been fully digested. The
measure is unlikely to pass in an election year, but it gives taxpayers an
indication of where Democrats will take us if one of their own wins the
White House. They will spend more and tax more, much more.
While Republicans surrendered the spending issue when they controlled
Congress, they still have the tax issue. They'll need it to repel Count
Rangula. Garlic, a cross, sunshine and a stake may not be enough.