An IBD editorial hits the high — make that low — points of Rep. Charlie Rangel’s (NY) new federal tax hike plan:
• A 4% income tax surcharge on adjusted gross income over $200,000 for married couples, rising to 4.6% on incomes above $500,000 — which will hit as the Bush tax cuts expire.
• An increase in the capital gains tax rate to 19.6% from 15% for households pulling in over $200,000.
• A more-than-doubling of the tax on private equity firms’ carried interest, from the capital gains rate of 15% up to 37.9% — heavily penalizing one of the most effective ways for businesses to restructure themselves and generate jobs.
• $9.4 billion more in Social Security and Medicare taxes for those who file via partnership.
• $4.3 billion in new taxes by requiring the reporting of stock purchase prices to the Internal Revenue Service.
• $20.7 billion in new taxes on mergers and acquisitions via amortization rules changes.
Most interesting for Charlotte, it is a tax plan that paints a bull-eye on the nation’s financial services sector. Super.
