House Ways and Means Committee Chairman Charles Rangel is preparing to introduce two major tax proposals that could revamp the entire tax code – and boost taxes by a whopping $1 trillion.
The first bill, which is expected to get easy passage, will deliver a one-year temporary fix to the alternative minimum tax (AMT), which threatens to impact 24 million upper- and middle-income taxpayers this year.
But the New York Democrat can expect a real battle to implement the second bill, a $1 trillion tax overhaul.
“The legislation, Rangel boasted, will simplify the tax code, eradicate the AMT for good, and ring up costs topping $1 trillion,” The Politico reports.
According to House rules, the $1 trillion increase must be offset by the closing of tax code loopholes and other measures.
Rangel’s bill would raise the tax rate paid by private equity, venture capitalists and hedge fund managers from the 15 percent capital gains rate to the 35 percent income tax rate.
Wall Street has spent tens of millions of dollars fighting the bill, according to The Politico.
The bill also includes child tax credits and earned income tax credits for low-income taxpayers. Rangel has suggested it could also include an overall cut of corporate tax rates, a provision likely to receive bipartisan support.
Rangel said he would probably bring the bill up for a vote next year, but wouldn’t rule out pushing it this year.
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