Rangel Tax Hike Fact of the Day #15

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:

“Rangel Tax Hike Even Takes Away Charlie Rangel’s Favorite Tax Break”

 The Rangel tax hike plan claims to reduce the burden of taxation for middle income families paying the AMT.  It does nothing of the kind.

The Rangel tax hike is a bait-and-switch on these families.  By imposing a surtax of up to 4.6% on as little as $150,000 of income (not taxable income), the Rangel tax hike takes away much of the deduction for state and local income and property taxes.

The irony here is rich. Way back in 1986, Charlie Rangel nearly scuttled the Tax Reform Act of 1986 in order to save the state income tax deduction, his favorite loophole. So Rangel won’t sacrifice the deduction in order to cut tax rates, but he will sacrifice it to raise them? Talk about the worst of both worlds.