Rangel Tax Hike Fact of the Day #16

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 ATR’s blog.  

Today’s fact is:

“Rangel Tax Hike Moves the Poor Into a Higher Tax Bracket”

Charlie Rangel likes to claim that his bill helps the poor and middle class, even as he raises taxes on the rich.  What many might be surprised to find out is that the “Mother of All Tax Hikes” also moves the poorest taxpayers into a higher tax bracket.

The Republican tax cut of 2001 created a new 10% tax bracket for lower-income Americans.  In 2007, the first $7825 of taxable income ($15,650 for married couples) is taxed in this 10% bracket. 

MOTH would tax every penny of this income at 15% instead. This rate-hike provision alone would add $783 to a married couple’s tax bill—even married couples anyone would call “working class.”

It just goes to show you—when Congressional Democrats say they’re raising taxes on someone else, watch your wallet.