Tuesday, July 31, 2007

Dems TAX HIKE Wish list get longer and longer


  1. At the beginning of Congress this year, Speaker Pelosi said that she would target those making more than $250,000 per year (presumably, married couples making this income) for tax hikes.
  2. Less than a month into their new majority, the Democrats passed (with some GOP help) the first tax increase since 1993. This tax increase (some provisions of which violate the Taxpayer Protection Pledge) was on energy companies. Guess whose bill that will come out of?
  3. I'll be charitable and put all of the private equity tax hike ideas in one basket. S. 1624 would tax publicly-traded investment partnerships as if they were corporations. H.R. 2834 would tax capital gains received by the investment manager (called "carried interest") at 35%, rather than 15%.
  4. John Edwards has come out for a top capital gains rate of 28%. Senator Ron Wyden has done him one better, saying that the top rate on capital gains and dividends (which are themselves actually double taxes) should be 35%.
  5. Just this past week, the Democrat House passed a bill that raises taxes on U.S. subsidiary corporations of foreign companies. This Pledge-violating vote was to pay for more food stamp money.
  6. In order to pay for nearly-full AMT repeal, the Democrats have come out with no shortage of ideas to raise taxes (why fixing an AMT mistake needs to be paid for is beyond me). Such ideas have included curtailing the state and local income and sales tax deduction, imposing a 4% AGI "surtax" on high income earners, taxing capital gains and dividends at AMT rates for those taxpayers, and probably a few others that I have forgotten.
  7. Rhetorically, Democrats have reserved a lot of their vitriol for international taxpayers. They want to repeal the 911 exclusion which allows Americans to shelter lots of earned income from double taxation, and they want to repeal many of the international corporate provisions of FSC-ETI.