Rangel Tax Hike Fact of the Day #6
Every day, Americans for Tax Reform will release a new fact about Charlie Rangel’s trillion-dollar tax hike. All prior facts of the day can be found on www.atr.org.
Today’s fact is:
“The Rangel Tax Hike Replaces Today’s AMT With Your Children’s AMT”
With much fanfare, Charlie Rangel released the “Mother of All Tax Hikes” with a central promise to American families—he would kill the hated “alternative minimum tax” (AMT).
In reality, he gives AMT taxpayers a bait-and-switch. While repealing the AMT with one hand, he imposes a surtax (largely on current AMT taxpayers) with the other. In short, he replaces today’s AMT with your children’s AMT.
Rangel’s MOTH bill would impose a surtax of up to 4.6% on families earning as little as $150,000 per year. While these families would no longer have to worry about possibly getting hit by the AMT, this fear would only be replaced by the certainty that they will have to pay the Rangel surtax.
Going forward, more and more families will be stuck in this new surtax trap. Our kids will complain about this surtax the same way we might complain about the AMT today.
Some deal. The AMT is gone—long live the Rangel surtax.