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Written by Rachel Patterson
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Friday, 02 November 2007 |
Charles Rangel, chairman of the US House of Representatives' Ways and
Means Committee, proposed on Tuesday a tax plan so radical even Nancy
Pelosi (the Speaker of the House) won’t endorse it. Rangel's idea best
represents the logical outcome of heavily taxing the wealthy and
successful in order to pay for social programs – and is particularly
dangerous for the Democratic presidential candidates because of it.
Facing the costs of social security and universal health care
plans put forth by democratic candidates, this plan responds by raising
taxes on the upper income brackets while attempting at relief for
middle and lower incomes by raising the threshold on the Alternative
Minimum Tax. The attempt at helping middle incomes is noble, but the
focus on raising taxes completely misguided. The top one percent of
incomes last year paid 25 percent of all federal taxes, let alone state
and municipal. They have already paid their share.
The Democratic candidates have themselves proposed repealing the
Bush tax cuts at incomes over $200,000 to $250,000 a year and pushing
the capital gains tax as far as 28 percent; Rangel’s plan goes even
beyond that to further tax raises on individuals and businesses,
especially those in the wealth-creating financial sector.
The Democrats need to be wary of Rangel’s proposals; Americans of
the middle and upper middle classes are uncomfortable with these kinds
of raises. Rangel’s proposals for middle incomes are the kind that
somehow only work out to helping the lowest brackets – continually
leaving the middle feeling squeezed. Rangel’s proposals do not differ
that much from those of the presidential contenders, but perhaps they
go just far enough to wake up swing voters to the uncomfortable truth
about the American left's idea of fiscal policy.
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