Rangel Floats Sweeping Tax Reform Bill

Rolls back Bush cuts for wealthy; unlikely to advance soon
By Jonas Oransky,  Newser Staff
Posted Oct 25, 2007 2:06 PM CDT
Rep. Charles Rangel, chairman of the House Ways and Means Committee, is introducing the bill   (KRT Photos)
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(Newser) – A Democratic bill unveiled today would dramatically alter the tax code, hiking taxes for those making more than $200,000 and slashing them for most others. The overhaul, which would effectively roll back Bush’s cuts for the wealthy, isn’t expected to get any traction until the White House has a new occupant, the New York Times notes, and is seen as a preview of future plans.

The measure would eliminate the alternative minimum tax, raise the standard deduction, and expand the earned-income tax credit. The cost of these new cuts would be balanced by a “replacement tax” for the top 10% of earners. On the business side, the basic corporate tax rate would be cut from 35% to 30.5%, offset by the elimination of a set of special tax breaks.