FUCK THE POLICE
911 EVERY DAY
Simplify the tax code, take away corporate welfare and pork disguised as protectionism, and raise taxes on rich people - finally someone has some good ideas.
http://economictimes.indiatimes.com..._face_48_bn_hit_in_US/articleshow/2491306.cms
WASHINGTON: House Ways and Means Committee chairman Charles Rangel said he will propose a $48-billion tax increase on executives of hedge funds and private-equity firms to pay for curbing another tax this year. The New York Democrat said the proposal would more than double the tax rate on so-called carried interest, the compensation that executives at buyout and venture-capital firms, as well as real estate and oil and gas partnerships, receive for managing investments.
It also would require hedge-fund managers to pay tax on income they defer in offshore accounts, he said.
The revenue would be used to pay for a stopgap measure that lawmakers must pass this year to temporarily protect 21 million US households from the alternative minimum tax.
The proposal will also be part of a broader overhaul that contains a permanent repeal of the minimum tax, a tax-rate surcharge on wealthy households and a lower corporate rate. “We are not raising taxes,” Rangel said at a Capitol Hill news conference today. “We are restructuring the rates of taxes so that at the end of the day 90 million taxpayers will walk away saying, ‘I’ve got a decrease in taxes.’”
The measure will set up a showdown between Democrats who want to offset the lost revenue with new levies and Republicans and the Bush administration, which oppose any increase.
Treasury Secretary Henry said Thursday the administration opposes Rangel’s plans, which “would dramatically raise taxes in ways that in my judgment would hinder America’s ability to compete in the global economy.” Rangel introduced the broader measure Thursday and plans to present the one-year stopgap bill next week. Wednesday, he briefed members of the tax-writing Ways and Means Committee.
“I didn’t get a lot of responses, though,” he said. After that, Louisiana Representative Jim McCrery, the ranking Republican on the panel, said he didn’t know all the details of Rangel’s plan, though had heard enough “to know that I can’t support the bill.”
Rangel said the broader measure, which he has called the “mother of all reforms,” would contain a 4% tax-rate surcharge on adjusted gross income over $200,000 for married couples. The surcharge would rise to 4.6% for those with income of more than $500,000. In addition, households with income of more than $200,000 would have to pay rates as high as 19.6% on capital gains and dividends, instead of the current rate of 15%.
That provision alone would raise $831.7 billion, more than enough to cover the cost of eliminating the minimum tax, Rangel said. Even with the surcharge, most taxpayers who earn between $200,000 and $500,000 will pay less than they would under the AMT, he said. The overhaul, which he said wouldn’t be voted on this year, also lowers the corporate tax rate to 30.5% from 35%.
To pay for that $363.8 billion tax cut, the proposal will repeal a special 32% tax rate for manufacturers and disallow the ‘last-in, first-out’ accounting method that reduces taxes for businesses that hold inventory. The proposal also imposes $9.4 billion in Social Security and Medicare taxes on lawyers, accountants and others who currently avoid them by organising as a partnership. It would also raise $4.3 billion in taxes from investors by requiring stock purchase prices to be reported to the IRS beginning in 2009 and all other types of securities beginning in 2011.
http://economictimes.indiatimes.com..._face_48_bn_hit_in_US/articleshow/2491306.cms
WASHINGTON: House Ways and Means Committee chairman Charles Rangel said he will propose a $48-billion tax increase on executives of hedge funds and private-equity firms to pay for curbing another tax this year. The New York Democrat said the proposal would more than double the tax rate on so-called carried interest, the compensation that executives at buyout and venture-capital firms, as well as real estate and oil and gas partnerships, receive for managing investments.
It also would require hedge-fund managers to pay tax on income they defer in offshore accounts, he said.
The revenue would be used to pay for a stopgap measure that lawmakers must pass this year to temporarily protect 21 million US households from the alternative minimum tax.
The proposal will also be part of a broader overhaul that contains a permanent repeal of the minimum tax, a tax-rate surcharge on wealthy households and a lower corporate rate. “We are not raising taxes,” Rangel said at a Capitol Hill news conference today. “We are restructuring the rates of taxes so that at the end of the day 90 million taxpayers will walk away saying, ‘I’ve got a decrease in taxes.’”
The measure will set up a showdown between Democrats who want to offset the lost revenue with new levies and Republicans and the Bush administration, which oppose any increase.
Treasury Secretary Henry said Thursday the administration opposes Rangel’s plans, which “would dramatically raise taxes in ways that in my judgment would hinder America’s ability to compete in the global economy.” Rangel introduced the broader measure Thursday and plans to present the one-year stopgap bill next week. Wednesday, he briefed members of the tax-writing Ways and Means Committee.
“I didn’t get a lot of responses, though,” he said. After that, Louisiana Representative Jim McCrery, the ranking Republican on the panel, said he didn’t know all the details of Rangel’s plan, though had heard enough “to know that I can’t support the bill.”
Rangel said the broader measure, which he has called the “mother of all reforms,” would contain a 4% tax-rate surcharge on adjusted gross income over $200,000 for married couples. The surcharge would rise to 4.6% for those with income of more than $500,000. In addition, households with income of more than $200,000 would have to pay rates as high as 19.6% on capital gains and dividends, instead of the current rate of 15%.
That provision alone would raise $831.7 billion, more than enough to cover the cost of eliminating the minimum tax, Rangel said. Even with the surcharge, most taxpayers who earn between $200,000 and $500,000 will pay less than they would under the AMT, he said. The overhaul, which he said wouldn’t be voted on this year, also lowers the corporate tax rate to 30.5% from 35%.
To pay for that $363.8 billion tax cut, the proposal will repeal a special 32% tax rate for manufacturers and disallow the ‘last-in, first-out’ accounting method that reduces taxes for businesses that hold inventory. The proposal also imposes $9.4 billion in Social Security and Medicare taxes on lawyers, accountants and others who currently avoid them by organising as a partnership. It would also raise $4.3 billion in taxes from investors by requiring stock purchase prices to be reported to the IRS beginning in 2009 and all other types of securities beginning in 2011.
