Rangel Tax Hike Fact of the Day #14
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 Euthanizes The Catastrophic Medical Deduction”
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 medical itemized deduction.
Taxpayers who have a great deal of out-of-pocket expenditures have always been able to deduct medical expenses—even under the AMT. The Rangel tax hike would kill off many of these deductions—a cure that is far worse than the disease.