Hatch: Middle Class Faces 'Stealth Tax' without AMT Reform

Wednesday, 28 Nov 2012 03:39 PM

By Jim Meyers and Kathleen Walter

A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Sen. Orrin Hatch says failure to restructure the Alternative Minimum Tax will next year leave 29 million middle-income families paying $92 billion more in “stealth taxes.”

Some Republicans have said they’d consider raising taxes on wealthier Americans, breaking their pledge to Grover Norquist never to increase taxes.
If there is no fiscal cliff deal well into December, Hatch was asked, will Republicans stick to their guns when it comes to those hikes?

Story continues below.

“Keep in mind that the upper two percent contains a lot of small business people who aren’t necessarily wealthy but who put their monies back into the business to hire people,” he tells Newsmax TV.

But if there is no agreement on the fiscal cliff, “in two months almost every single American taxpayer is going to be hit with the largest tax increase in history. Why is that? Because of the AMT (Alternative Minimum Tax). It will turn into a minimum tax. [One newspaper] called it taxmageddon. I could not think of a better word.

“If we don’t address the fiscal cliff, taxes will go up for everybody by over $4.5 trillion over the next 10 years. To break that down, this means small business owners will face a top marginal tax rate hike of 17 percent. And the number of farmers and small business owners who will face the death tax will grow exponentially. It will be like a 25 hundred percent increase in death taxes and vulnerability.

“It means more than half, that is 53 percent, of all flow-through business income in the United States will be subject to the president and congressional Democrats’ proposed tax increases.

“That’s especially hard for the small businesses. But it also means the alternative minimum tax will leave more than 28 million middle-income tax-paying families and individuals paying $92 billion more in stealth taxes in a few months. And that’s about $2,500 a family.”

So does Hatch believe other Republicans will renege on their pledge not to raise taxes?

"I don’t. In fact, I’m not sure that those who’ve spoken up – they’re just saying, look, we consider everything. Everything should be on the table but we are against rate increases because we know that every time in the past – I’ve only been here 36 years — but every times we’ve given them rate increases with the promise that we’ll get spending cuts, we’ve had the rate increases become permanent and no spending cuts ever occur.

“Let’s face it, we’ve been through that routine far too much.”

See other exclusive excerpts from the Newsmax interview with Sen. Orrin Hatch:

© 2014 Newsmax. All rights reserved.

   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Va. GOP Can't See End to Medicaid Standoff, Fears Loss of Bond Rating

Wednesday, 16 Apr 2014 15:17 PM

If leading Virginia Republicans are right, the battle over Medicaid expansion could leave the state wounded. Virginia Ho . . .

Bridge-gate Legal Fees Running Up to $340 an Hour for NJ Taxpayers

Wednesday, 16 Apr 2014 14:27 PM

New Jersey taxpayers are shelling out as much as $340 an hour for lawyers to represent five present or former staffers o . . .

Art Critic: Bush a Better Artist Than Thomas Kinkade

Wednesday, 16 Apr 2014 14:17 PM

Late "painter of light" Thomas Kinkade was a better technical painter than former President George W. Bush, says art cri . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved