Mother of all Tax Bills?

Posted: Oct 24, 2007 5:36 PM

The word is that Chairman of the Ways and Means Committee Charlie Rangel (D-NY) will introduce he is calling the “Mother of all Tax Bills” tomorrow.

Rumors are that it will do two good things:
        1.)    Eliminate the Alternative Minimum Tax (AMT);
        2.)    Lower the Corporate tax rate from 35% to 30.5%

However, it is also rumored to do many bad things including:
        1.)    New higher rates for all incomes of $150,000(single) and $200,000(joint);
        2.)    Repeal many business tax deductions including the LIFO inventories and section 199 manufacturer’s deduction.

This is clearly not the entire bill but one thing is for sure; it will increase taxes by nearly a trillion dollars.  I don’t need to explain to you that it will take a lot of taxpayer’s paying a lot more taxes to make up for a trillion dollars.