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Charlie Rangel's "Surtax" Breaks Taxpayer Protection Pledge
By Americans for Tax Reform | 07/13/09 | 09:22 PM EDT | 4 Comments
On Friday, House Ways and Means Committee Chairman Charlie Rangel (D-NY) announced a new tax increase to pay for government-controlled health care. Under the plan, taxpayers making as little as $280,000 per year will see a surtax of between 1% and 3% of adjusted gross income.
This “surtax” is merely a thinly-veiled way to raise the top marginal tax rate. A 3% surtax on married couples making $1 million or more would raise the top marginal tax rate in 2011 to 42.6%, up from 35% today.
Raising income taxes at all, and marginal tax rates in particular, is a clear and unambiguous violation of the Taxpayer Protection Pledge. This Pledge has been made by 172 Congressmen and 34 Senators to their constituents and the American people. They promised not to raise income taxes or marginal income tax rates.
The news is worse for small business owners. Small business profits face taxation on their owners’ 1040 forms. Two-thirds of small business profits pay taxes in households making at least $250,000 per year. Thus, this marginal tax rate increase is a tax hike on $2 out of every $3 small business dollars.
This marginal tax hike will affect small employers and their employees. One-third of Americans work in firms with 2 to 100 employees. These small businesses, which must have profits to employ workers, will face these marginal tax rate hikes. The cost will be born out in lower wages and less jobs.
Why raise taxes on job-creating small businesses in the middle of a deep recession with 10% unemployment? It makes no sense to do this economically. When Medicare payroll taxes and state income taxes are added to the mix, a small employer could easily face marginal tax rates approaching 50%, which would be the highest level since the stagflation 1970s.
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Comments
I live in Rangel's district and he is a laughing stock. This guy has no regard for promises. When it comes to taxes, he just keeps pushing.
The American people better wake up soon or we're going under. These tax and spend Democrats are finishing us all off. Why have Rangel and Jackson been so quite? The Honeymoon's over they can speak now. It just seems like these loudmouths have gone underground and only surface when they decide to tax us and spend our money.
If Obama's health care reform passes, there will be about 150,000 fewer high-earning families left to pay this surtax. Healh care jobs are some of the best jobs in the country. When they are lost, they can not be replaced. The result is a huge loss in tax revenue.
I have already seen job loss related to reform. At my web site, http://www.gorillamedicalsales.com , a job board for medical device sales representatives to find employment, vacant sales jobs are simply being left vacant, as medical companies prepare for life after Obama's reform.
Ah, Charlie Rangel,Tax Cheat, believes that "other" Americans must pay for the sins of the Democrats and their theory of big government. But he's not alone. President Obama will not keep his word. Geitner, tax cheat #!, will not keep his word and we will borrow and borrow to support Turtles, Cranberries, foot paths and other unnecessary projects, few of which product any long term sustaining employment, until this country is buried even further in debt.
With the advent of the Bills currently on the floor and up for debate, including Health Care (which has little to do with Health or Care and more to do with Government controlling the People, their bank accounts (pg. 59) and their longivity, Cap and Trade, Card Check (now renamed EFCA), energy bills, the Diversity Czar, Mark Lloyd who threatens to quast our 1st Amendment Rights, and the tax and penalties included in his proposal, Americans are merely slaves to the Dictators in the Obama Administration.
You may want to note that Dems are never prosecuted or persecuted by this Administration. Rangel, cheating the IRS out of thousands of dollars in back taxes was asked to pay only the principal amount, with no penalties. Edwards has gotten a pass, while the Senator from NC, has been desecrated by the Media. Governor Richardson, NM has his pay to play investigation dismissed without any admission that he was "not guilty" by the investigators, and Geitners taxes were foregiven as well.
There is no truth and no Consitutionality to this Administration. Truth of the matter is that this Administration does not work for the people, but against the people to form a larger more controlling Government at the expense of the Taxpayer, removing Rights and Liberties every step of the way.
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