Democrats Craft New Tax Rules, New Image

[cal04]

Source: Washington Post

Plan Tries to Shield Middle Class From Paying High Rates

House Democrats, aiming to seize taxes from Republicans as a political issue, have come up with a plan to shift the burden of the hated alternative minimum tax onto the shoulders of the nation's richest households.

The proposal, still in its preliminary stages, would attempt to restore the original purpose of the parallel tax structure, which was created in 1969 to nab 155 super-rich tax filers who were using loopholes and deductions to wipe out their tax bills.

Because it was not indexed for inflation, the AMT delivered a significant tax increase to an estimated 3 percent of households this year. Unless the law is changed, it is projected to strike nearly 20 percent of taxpayers when they file returns next spring, many earning as little as $50,000 a year.

House Democrats are trying to craft legislation that would spare those households while providing relief to many current AMT payers. Under a proposal presented last week to Democrats on the tax-writing Ways and Means Committee, families making less than $250,000 a year -- about 98 percent of taxpayers -- would be exempt from the tax. Those earning between $250,000 and about $500,000 would see lower AMT bills, according to Democratic sources who spoke on condition of anonymity because the plan is not final.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2007/04/22/AR2007042201552.html?hpid=topnews

[Lasher]

1. And with respect to pay/go, I suppose we'll roll back part of the 2001 & 2003 tax cuts

It should be easy to find money there for the revenue loss this measure would otherwise cause.

[truthisfreedom]

2. I'm down with that.

I don't make $250K. Yet. 8^)

[CANDO]

3. Democrats have always been about middle class tax relief.

Those filthy bastards on the right always whine and cry about cutting taxes, but never get it that when a Repub lawmaker talks tax cuts, they mean for their rich friends. When Democrats talk tax hikes, they mean for the wealthy and big business.

[Puppyjive]

4. Give tax breaks to 1 income families

If the middle class were given a big enough tax break so that one parent could stay at home, imagine the possibilities! Higher incomes, decrease in fuel consumption, better adjusted kids. It is a dream that very few middle class Americans achieve. Our families sacrifice for the rich, so they can live in their mansions and waste natural resources. It's okay though, because the rich give to charity, or should I say, they hide their corporate greed through charitable giving. In my opinion, the rich create the need for charity.

[papau]

5. Largest "middle class/poor" tax break would be end wage cap so as to drop payroll tax rate 2%

even better would be to include all income - not just wage but also investment via the Social Security adjustment section already in the FIT's 1040 form. That would actually allow the drop in payroll tax rate to be called a strengthening of the Social Security financing. We would then celebrate those million dollar SS monthly benefit checks to the rich knowing the hundreds of millions they paid into the system to get them. We would still "all be in this together - no means test or limit on benefit check size" - but the world would be fairer.

But this is too "left" for our afraid of the rich and corporate friends in Congress.