Biglaw, Money, Politics, Tax Law

Rep. Charlie Rangel Doesn't Want To Eat Your Babies

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Nor does he want to raise your taxes, at least if you’re a member of the middle class (which many Biglaw lawyers are, at least if “middle class” is broadly defined). He actually wants to bring the middle class tax relief.
Since you all felt so strongly about it, judging from the hundreds of comments, we thought we’d bring you this quick follow-up to last week’s post about Rep. Charles Rangel’s new tax plan. In our write-up, we highlighted the 4 percent surtax for single earners with incomes over $150,000, or married couples with incomes over $200,000.
But Rep. Rangel argues that the bill is really all about abolishing the alternative minimum tax (AMT). He makes this argument today in the editorial pages of the Wall Street Journal (not the natural habitat of a Charlie Rangel byline).
More after the jump.


In his WSJ piece, Representative Rangel writes:

My legislation would repeal the AMT, so that taxpayers will no longer have to fill out multiple tax forms, or wonder year after year whether they will be hit. My reforms would also provide economic security to taxpayers. They would allow millions of additional families to access the $1,000 child tax credit, raise the standard deduction, and expand access to the earned-income tax credit so that working adults will not face tax liability before reaching the poverty level. In total, the bill provides increased tax benefits to more than 90 million families. This is meaningful tax relief for those who need it most.

In order to achieve broad tax relief without increasing the national debt, this legislation restructures benefits provided at the upper income levels. The bill would also end the preferential and lucrative tax treatment currently enjoyed by private equity and hedge fund managers….

Opponents will attack my reforms by labeling them a tax increase. This false rhetoric ignores the tax cuts that would be provided to some 90 million Americans as well as the Joint Committee on Taxation’s Determination that the bill is revenue-neutral. Some of my Republican friends have even suggested financing of tax reform with a round of tax cuts that are not paid-for. Supporters of this approach should have the courage to lay out a precise plan for how they will pay for the ongoing war in Iraq, the commitments to our veterans, much-needed improvements in our infrastructure. and investments in our health-care and education systems.

All fair points. Best line: “this legislation restructures benefits provided at the upper income levels.” Nicely done, Congressman Rangel!
The AMT Must Go [Wall Street Journal]
Earlier: Nationwide Pay Raise Watch: Time to Soak the Rich Upper Middle Class?

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