RNC Research On Clinton And The AMT
"Where's Clinton Plan On The AMT?"
after the jump...
Hillary Clinton first deferred to Rangel on the AMT and shared his goal of progressive reform, but it appears that has changed tonight. Hillary Clinton said she would reform the AMT, if she no longer defers to Rangel, where is her plan?
During Hillary’s Economic Policy Speech, She Claimed She Would Reform The AMT: “[I] will reform something called the Alternative Minimum Tax, the AMT, to make sure it doesn't hit middle class families with higher tax rates. It was never intended to do that.” (Sen. Hillary Clinton, Policy Speech On “Rebuilding The Middle Class: Hillary Clinton's Economic Blueprint For The 21st Century,” Cedar Rapids, IA, 10/8/07)
HILLARY’S FAILURE TO LEAD ON ALTERNATIVE MINIMUM TAX REFORM
Hillary Failed To Lead On The Alternative Minimum Tax – Instead Delegating Reform To Rep. Charles Rangel (D-NY):
During Hillary’s Economic Policy Speech, She Claimed She Would Reform The AMT: “[I] will reform something called the Alternative Minimum Tax, the AMT, to make sure it doesn't hit middle class families with higher tax rates. It was never intended to do that.” (Sen. Hillary Clinton, Policy Speech On “Rebuilding The Middle Class: Hillary Clinton's Economic Blueprint For The 21st Century,” Cedar Rapids, IA, 10/8/07)
But Hillary Later Admitted She Would Delegate AMT Reform – Which Impacts More Middle-Income Taxpayers Each Year -- To Rep. Charles Rangel. “She also said she would defer to Democratic Rep. Charles Rangel of New York, chairman of the House Ways and Means Committee, on fixing the alternative minimum tax. … ‘I know that we have to do it,’ she said, ‘...but I'm not going to dictate how it should be done because there's a lot of horse-trading going on here.’” (Jackie Calmes, “Clinton Turns To Economic Issues,” The Wall Street Journal, 10/9/07)
Hillary Shares Rangel’s “Broad Goal Of Progressive Tax Reform”:
Hillary Spokesman Phil Singer Said Hillary Shares Rangel’s “Broad Goal Of Progressive Tax Reform.” “Few Democratic lawmakers or candidates rose to Rangel's defense. Of the party's top-tier presidential hopefuls, only Senator Hillary Clinton of New York commented on the plan: ‘Senator Clinton and Representative Rangel share the broad goal of progressive tax reform,’ said Phil Singer, a campaign spokesman.” (Alison Fitzgerald, “Republicans Welcome Rangel's Tax Bill As Election-Year ‘Gift,’” Bloomberg News, 10/26/07)
* “‘I’m Willing To Work With Any President, No Matter Who She Is,’ Rangel Told Reporters In An Obvious Reference To His Favorite Candidate, Sen. Hillary Clinton (D-N.Y.).” (William Neikirk, “Democrat Unveils Tax Proposal,” Chicago Tribune, 10/26/07)
Rangel’s Plan Includes Punitive Taxes On Manufacturing, Upper-Income Americans, And On Capital Gains And Dividends:
Rangel’s High-Tax Plan Imposes A 4% Surtax On Americans Earning $150,000 Or More. “Upper-income families, however, would pay for that repeal with a 4% surtax on incomes above $150,000 for a single earner or incomes above $200,000 for a married couple. That surtax would grow to 4.6% for incomes above $500,000.” (John Godfrey, “Rangel Tax Plan's Centerpiece Is 30.5% Top Corporate Rate,” Dow Jones Newswires, 10/24/07)
U.S. Manufacturing Would Lose An Important Tax Deduction For Domestic Production. “Manufacturing companies, for example, would lose a deduction for domestic production that now reduces their tax rate on manufacturing income to 32%.” (Sarah Lueck, “Rangel's Corporate-Tax Bill May Frame Future Debate,” The Wall Street Journal, 10/23/07)
“Mr. Rangel Also Wants To Raise The Capital Gains Tax Rate To 19.6% From 15% Today, And Raise Taxes On Dividends, Business Partnerships, And Companies With Foreign Subsidiaries.” (Editorial, “Trillion-Dollar Baby,” The Wall Street Journal, 10/26/07)
NOTE: President Clinton And ‘93 Democrat Congress Are Responsible For The Majority Of The AMT Problem Today:
“The Last Time Democrats Controlled The House, Senate, And Presidency, They Chose To Raise The AMT From 24 Percent To A Top Rate Of 28 Percent.” (Americans For Tax Reform Website, www.atr.org, Accessed 10/29/07)
If Not For The 1993 Tax Hike – Signed Into Law By President Clinton – The AMT Would Impact 2.6 Million Americans, Opposed To 23 Million. “This year more than three million taxpayers will be hit by the Alternative Minimum Tax on their 2006 income. But next year that number could rise to 23 million unless Democrats in Congress come up with a way to halt the juggernaut that is the AMT. … According to the Joint Committee on Taxation, the AMT would have hit ‘only’ 2.6 million Americans next year if not for that tax hike.” (Editorial, “Democrats And The AMT,” The Wall Street Journal, 4/14/07)
* “So Nearly 90% Of This [AMT] Problem Was Created The Last Time Democrats Ran The \