Hillary Clinton’s proposed “New College Compact” is estimated by her campaign to cost $350 billion over ten years. Where will the money come from? According to the Clinton campaign, every cent of the $350 billion will come from tax increases on the American people. A review of the proposal by Americans for Tax Reform shows that as many as 35,000 Iowa households will be stuck with a higher tax bill.
The $350 billion tax hike over ten years comes in the form of a 28 percent cap on itemized deductions. The Clinton spending plan reduces the income tax deductibility of countless deductions including charitable donations, high medical bills, mortgage interest, and state and local taxes for Iowa families in the 33-percent, 35-percent, or 39.6 -percent brackets, limiting their value to just 28 percent.
According to IRS Statistics of Income Data for 2012 (the most recent year available), this Hillary tax hike will hit about 35,000 Iowa households, based on the number of families who earned over $200,000 and itemized their deductions.
The proposal in effect would create a new Alternative Minimum Tax (AMT).
“By capping itemized deductions — which already phase out based on income — Clinton will complicate the tax code and bring back the AMT for millions of families,” said Grover Norquist, president of Americans for Tax Reform. “The original AMT targeted 155 individuals but grew to target 40 million families. Hillary’s new idea is the old AMT that starts as a $350 billion tax hike and will certainly grow.”
Clinton’s attempt at “free” college through increasing taxes aligns with her threat: “We’re going to take things away from you on behalf of the common good.” This remark was made during a speech to her financial backers and was overheard and reported by the Associated Press. Unaware there was a reporter present, then-Senator Clinton felt free to spell out her true tax worldview.
This is not the only tax hike Clinton has proposed. When the campaign launched, Clinton spokesman Brian Fallon warned of upcoming “revenue enhancements” – and the campaign has not disappointed. With almost ten months till Election Day, Clinton has already proposed over $1 trillion in tax increases.
For more information, visit www.HighTaxHillary.com