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PRESS RELEASE FROM AMERICANS FOR TAX REFORM
Contact: John Kartch ( jkartch@atr.org or 202-785-0266)

[View Printable Adobe Acrobat File]

Tax Hikes in Rangel’s “Mother of All Tax Bills”

• Tax Hikes in Charlie Rangel’s“Mother of All Tax Bills”

  • Surtax  of up to 4.6% on Americans earning as little as $150,000 per year
    Cost: $831.7 billion over 10 years
  • Phase out deductions and personal exemptions for “high income” taxpayers
    Cost: $28.6 billion over 10 years
  • Further restrict miscellaneous itemized deductions
    Cost: $7 billion over 10 years
  • Tax investment partnership manager’s capital gains as ordinary income
    Cost: $25.7 billion over 10 years
  • Include deferred comp of overseas hedge fund managers in current income
    Cost: $22.6 billion over 10 years
  • Modify unrelated business income rules for investment partnerships
    Cost: $1.3 billion over 10 years
  • Treat gain on sales between related parties as ordinary income
    Cost: $135 million over 10 years
  • Expose most S-corporation profits to Social Security and Medicare taxes
    Cost: $9.4 billion over 10 years
  • Require brokers to report the basis of all future stock and mutual fund sales
    Cost: $4.3 billion over 10 years
  • Repeal the domestic production activities deduction
    Cost: $115 billion over 10 years
  • Deny deductions to corporations that defer taxation on foreign income
    Cost: $106 billion over 10 years
  • Repeal worldwide allocation of interest
    Cost: $26 billion over 10 years
  • Limitation on deductions for companies doing business in some treaty nations
    Cost: $6.4 billion over 10 years
  • Repeal last-in, first-out (LIFO) accounting rules
    Cost: $106.5 billion over 10 years
  • Repeal the lower of cost or market record
    Cost: $7.1 billion over 10 years
  • Special rule for accrual method service providers not applied to corporations
    Cost: $225 million over 10 years
  • Amortization of intangibles extended from 15 years to 20 years
    Cost: $20.7 billion over 10 years
  • Codification of the “economic substance doctrine”
    Cost: $3.6 billion over 10 years
  • Reduce corporate dividends received deduction by 10 percentage points
    Cost: $4.6 billion over 10 years
  • Ordinary income taxation of S-corp stock option in an ESOP
    Cost: $606 million over 10 years
  • End domestic international sales corporation (DISC) rules
    Cost: $881 million over 10 years
  • Treat distributions of debt in a spin-off transaction the same as property
    Cost: $235 million over 10 years

  TOTAL TAX INCREASES: $1.33 Trillion Over 10 Years

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Americans for Tax Reform is a non-partisan coalition of taxpayers and taxpayer groups who oppose any and all federal and state tax increases.  For more information, or to arrange an interview with Mr. Norquist please contact John Kartch at (202)785-0266 or by email at jkartch@atr.org.