Giant tax overhaul bill unveiled

[eppur_se_muova]

Source: CNNMoney.com

AMT repeal. Lower corporate tax rates. A bill Rep. Charles Rangel offers $1 trillion in cuts. Here's how he would pay for them.

By Jeanne Sahadi, CNNMoney.com senior writer
October 25 2007: 11:10 AM EDT

NEW YORK (CNNMoney.com) -- No one actually expects lawmakers to overhaul the tax code this year, but House Ways and Means Chairman Charles Rangel (D-NY) planted his flag Thursday morning by unveiling a bill that he calls the "mother of all tax reforms."

Tax policy experts and political observers do expect Rangel's bill to provide serious fodder for debate in 2008.

"This is a view of coming attractions," said Greg Valliere, chief strategist of policy research firm Stanford Washington Research Group.

One element of Rangel's bill that is likely to see a vote this year, however, is his proposal to extend for one year an Alternative Minimum Tax (AMT) patch. That patch will prevent 21 million taxpayers from having to pay the so-called "wealth" tax.

Read more: http://money.cnn.com/2007/10/25/pf/taxes/rangel_tax_reform/index.htm?cnn=yes

[bullimiami]

1. and a clip from the ap spin meisters

Republicans quickly voiced strong opposition to the long-term plan. "This is the largest individual income tax increase in history," Rep. Jim McCrery of Louisiana, Rangel's low-key GOP counterpart on the committee, wrote fellow Republicans. Rangel, he said, "is selling pure snake oil."




The Repukes have NO credibility on anything to do with taxes or the economy. They sold it down the river for W.

[Lone_Star_Dem]

2. AMT: If Congress waits, refunds to be delayed

NEW YORK (CNNMoney.com) -- If lawmakers want to protect tens of millions of taxpayers from the Alternative Minimum Tax, they'd best make it snappy.

If Congress does not act in the next two weeks or so, 25 million to 50 million taxpayers will see the processing of their returns and their refunds delayed, the IRS said Tuesday.

In a press briefing, IRS Acting Commissioner Linda E. Stiff said that it will take the IRS between 12 and 13 weeks to process any AMT-related tax law changes from the day the bill is signed into law.

Currently, the IRS is scheduled to send its 1040 instruction forms to press on Nov. 7 and will mail them out the first week in January, said IRS spokesman Terry Lemons. The agency will begin processing 2007 tax returns on Jan. 14.

If lawmakers wait until December to make changes to the AMT, the IRS would not be able to start processing the 25 million to 50 million affected returns before mid- to late-March.

More on this...

Senate GOP puts price on a blue-state tax cut

Senate Republicans are demanding the extension of President Bush’s signature tax cuts before they cooperate on hemming in another tax that they contend affects mostly “blue state” voters living along the coasts.

Under pay-go rules, Democrats would have to pay for a one-year AMT patch, which would cost $55 billion.
This has fueled speculation that Democrats will override pay-go rules to pass the AMT fix. However, Democrats need 60 votes to get around the budget rules.

Lott said there are “more than the necessary votes” in his conference to stop Democrats from reaching the 60 votes necessary to waive pay-go rules.

<snip>

The GOP strategy sets up a high-stakes game that Republicans hope will result in the extension of at least one of the Bush tax cuts. Because of the budget rules, Republicans can hold the AMT patch hostage to their demands without actually filibustering a tax cut that they would be loath to oppose.
http://thehill.com/leading-the-news/senate-gop-puts-price-on-a-blue-state-tax-cut-2007-10-24.html

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3042170&mesg_id=3042170

[redqueen]

3. I like this part

Add an income surtax: The bill proposes that high-income filers would pay at least a 4 percent surtax on adjusted gross incomes above $100,000 ($200,000 for joint-filers).

But with the repeal of the AMT, the majority of taxpayers with AGIs under $500,000 would pay less than under current law, the Tax Policy Center estimates. Under current law, the Bush tax cuts would sunset by 2011 and there would be no patch for the AMT.


If that gets out, it ought to make the lies the repukes are already using more obvious.

[toopers]

4. We just need to go to a national sales tax . . .

it would simplify everything and reward people for the right behavior.

[Dave From Canada]

5. What exactly is the "right" behavior?

[TexasBushwhacker]

7. Saving instead of spending,

not buying a more expensive home than you need just because you get a bigger tax break, etc. A national sales tax would also get revenue from people who are part of the underground economy - people paid in cash for their services, drug dealers, etc.

While I see some advantages to a national sales tax, if I owned a business that charged sales tax (restaurants, retail stores, hair salons, hotels, etc.) I would be very concerned that it would cost me business, at least at first.

[sandnsea]

8. Almost every state has a sales tax

It's not encouraging savings. Neither would a national plan. There's nothing wrong with income tax, we just have to pay more attention and keep them from passing all the loopholes.

[toopers]

9. Almost all states have an income tax also . . .

you have to go to an all or nothing system to make a sales tax work.

[wuushew]

6. Are you on crack?

Go to General Discussion and post something like "Why is the fair tax bad?" or something like that.

What countries do you respect that push sales tax as a preferred form of taxation?

[toopers]

10. I know enough about the national sales tax . . .

I do not need to go to the general discussion.