Rangel’s other shoes

posted at 11:00 am on November 16, 2008 by Ed Morrissey

Has Charlie Rangel transformed into a Laffer Curve, free-market thinker?  Not quite.  Bloomberg reports that Rangel has agreed with John McCain on reducing the corporate tax rate, but Rangel plans to pay for it by stripping out deductions, effectively raising taxes on corporations instead:

New York Representative Charles Rangel said he’s revising his tax overhaul proposal to reduce U.S. corporate tax rates to 28 percent, down from the current rate of 35 percent.

Rangel, in an interview with Bloomberg Television’s “Money and Politics,” said he’s changing the “mother of all tax reform” he unveiled in September 2007 to accommodate President- elect Barack Obama’s agenda. That earlier plan would have set the corporate tax rate at 30.5 percent. Rangel is the chairman of the House Ways and Means Committee, which oversees tax policy.

Sounds good so far, right?  Rangel lets the other shoe drop in the details:

In July 2007, the Treasury Department said the U.S. could reduce the corporate tax rate to 25 percent by eliminating popular benefits such as a research credit and a deduction for making products domestically.

Rangel two months later also recommended repealing the deduction for domestic production, other incentives that primarily benefit multinational corporations, as well as tax benefits associated with a popular accounting method known as last-in, first-out.

This sounds a little odd after listening to Barack Obama the last two years.  Rangel now wants to eliminate the tax credit associated with manufacturing goods inside the US?  What happened to the pledge to give tax breaks to companies that kept manufacturing jobs in America?  The elimination of the research credit also comes at a strange time, given Obama’s insistence on the need for research into green energy solutions.

Rangel also wants to slap a surcharge on the rich.  In addition to hiking the upper tax rate to 39.6%, Rangel wants an additional 4% added to those who make as little as $200,000 per year.  That makes the overall tax rate for those incomes 43.6%, and it includes people whom Obama promised a tax cut during the campaign.

What does Rangel want to do with the extra income he thinks he’ll get from these tax hikes?  Rangel wants to fund the tax credits that Obama promised to the middle class, of course, enabling the redistributionism on which Obama won the election.  Of course, as manufacturing jobs move overseas in greater numbers and people have less capital to invest, jobs will disappear, and the government will have much less wealth to transfer than Obama and Rangel predicted.  We’ll see more tax hikes as they attempt to deliver on their populist promises, which will damage the economy even further, and start a tailspin for the American economy that neither Rangel nor Obama can stop with their economic ideologies.

When Rangel talks tax cuts, always look for the fine print.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

And the economy gets worse.

boomer on November 16, 2008 at 11:05 AM

Why isnt he in jail?

becki51758 on November 16, 2008 at 11:05 AM

he stinkith

Mercy4Me on November 16, 2008 at 11:07 AM

Never trust a liberal.

The Rock on November 16, 2008 at 11:10 AM

Every Obama statement has an expiration date (which is Nov. 5 in most cases). Including this, undivided Jerusalem, and just about anything else that escapes his mouth.

The Dean on November 16, 2008 at 11:10 AM

How are the democrats going to pin the dramatic downturn in the economy around 2010?

jukin on November 16, 2008 at 11:10 AM

When Rangel talks tax cuts about anything, always look for the fine print.

There ya go….

Hog Wild on November 16, 2008 at 11:13 AM

The left simply wants over 50% of their voters paying no taxes while putting the burden on the minority of taxpayers – aka “the rich.” They are only concerned with achieving power by fooling the gullible into thinking that punishing the productive allows them to reward the uninformed working people.

perroviejo on November 16, 2008 at 11:13 AM

Rangel needs to be horse whipped and chained to a cement wall! Is he in good health? How I loathe that evil SOB! I am so sick of some that have been in DC long enough. There needs to be house cleaning big time! Rangle has filled his pockets with a lot of money, as did most of his gang. This does reek of stench!

sheebe on November 16, 2008 at 11:14 AM

The democrats will have investigations investigating the president over the next 2 years hoping that something good will happen and they can take credit for it.

It is a stealth policy

tomas on November 16, 2008 at 11:14 AM

I can’t even look at a picture of that guy without getting a face like I’m sucking on a lemon. He looks like a pedophilic porn star!

allahallahoxenfree on November 16, 2008 at 11:15 AM

We’ll see more tax hikes as they attempt to deliver on their populist promises, which will damage the economy even further, and start a tailspin for the American economy that neither Rangel nor Obama can stop with their economic ideologies.

And 4 years from now they will still be blaming Bush, and will ask the voters for 4 more years to repair the damage.

Buy Danish on November 16, 2008 at 11:15 AM

Someone just give this guy a hero and send him on his merry way

blatantblue on November 16, 2008 at 11:16 AM

How in the world could Rangel voice any opinion about taxes with a straight face? How could any one in the media seek his opinion about taxes is beyond comprehension?

peterargus on November 16, 2008 at 11:16 AM

How are the democrats going to pin the dramatic downturn in the economy around 2010?

George Bush

peacenprosperity on November 16, 2008 at 11:17 AM

To be polite, Rangel is an idiot.

GarandFan on November 16, 2008 at 11:19 AM

I love being a new yorker, we get so many wonderful stories of dems behaving badly, Before any of you attack Rangel, we should respect the fact that he now only has three rent controlled apartments instead of 4.

rob verdi on November 16, 2008 at 11:21 AM

When will Americans learn that the only “business” Democrat politicians really believe in is government. They no longer believe in free market capitalism.

flyfisher on November 16, 2008 at 11:22 AM

There are a whole bunch of accountants out there sharpening their pencils to help the rich avoid paying more taxes.

jcheney on November 16, 2008 at 11:23 AM

What does Rangel want to do with the extra income he thinks he’ll get from these tax hikes?

The he thinks the crux. If McCain had had one iota of respect for the electorate he might have taken the chance to explain that, historically, tax increases do not guarantee an increase in tax revenues… and isn’t that what it’s all about… unless one is trying to socially engineer us… and screw that, eh?

Shivas Irons on November 16, 2008 at 11:24 AM

Getting tax advice from Charlie Rangel is about as sensible as getting marital advice from Joey Buttafuoco.

perroviejo on November 16, 2008 at 11:30 AM

I say we tape a funnel to his open mouth and force feed him gravy until his arteries have the consistency of molasses in January. I could think of at least two dozen other Senators and Reps too. The Horror! The Horror!

allahallahoxenfree on November 16, 2008 at 11:30 AM

There are a whole bunch of accountants out there sharpening their pencils to help the rich avoid paying more taxes.

jcheney on November 16, 2008 at 11:23 AM

Accountants look for the loopholes, Dems check loophole and raise taxes. 50 percent of Americas who pay no taxes and with no more initiative than it takes to figure out which cell phone plan they can afford look on with amusement.

The never-ending game of Democratic Calvin-Ball Economics.

hawkdriver on November 16, 2008 at 11:30 AM

Rangels’ bill (HR-3970) will also eliminate the limited social security tax relief of being taxed as an S-corp. In addition to all applicable income taxes, all income will be taxed at 15% for SS/Medicare instead of wages being taxed at 15% while additional profits are taxed at 7.5% for SS. In short, if you are a profitable s-corp, a good portion of your income will see a 7.5% tax hike right off the top for the “self-employment, social security, FICA, payroll, whatever-you want-to-call-it tax”.

This is going to be very costly to me and all other profitable s-corps even if the income is well below $250k, and this been known since he drafted the bill last year. Practically nobody has taken note of it – John McCain included.

In addition to broadening the application of the SS tax, I expect the rate to go up soon too, but the Democrats will claim to have given us a “tax cut” by lowering the nominal income tax rate, while hiking social security tax. No matter how this shakes out, I’m very confident I’ll be paying significantly more total tax money to the government next year regardless of false claims of tax cuts.

forest on November 16, 2008 at 11:32 AM

Hey, you know what else Rangel supports? A National Service Act.

To require all persons in the United States between the ages of 18 and 42 to perform national service, either as a member of the uniformed services or in civilian service in furtherance of the national defense and homeland security . . . .

And -

The term `national service’ means military service or service in a civilian capacity that, as determined by the President, promotes the national defense, including national or community service and service related to homeland security.

Read the whole thing and you’ll see that this asks for a 2 year commitment, not the mere 3 months in Barack’s Barracks that Rahm Emanuel has proposed. Women are also required to serve, so I’m guessing that the children of women who become pregnant will be made wards of the state – perhaps tended to by kindly ‘community service’ volunteers conscripts.

Buy Danish on November 16, 2008 at 11:33 AM

Rangel also wants to slap a surcharge on the rich. In addition to hiking the upper tax rate to 39.6%, Rangel wants an additional 4% added to those who make as little as $200,000 per year. That makes the overall tax rate for those incomes 43.6%, and it includes people whom Obama promised a tax cut during the campaign.

Would Obama go along with this?

This would open Obama to “Read my lips” assaults.

And they’d be absolutely true.

drjohn on November 16, 2008 at 11:37 AM

This is going to be an unmitigated disaster.

But though taxes are a problem, a bigger problem is crap like Sarbanes-Oxley, 800 page union contracts and swathes of red tape just to hire or fire someone.

lodge on November 16, 2008 at 11:37 AM

Since I cant seem to post in the Obama endorsing Saudi peace plan thread… I’m posting here =p

In Israel, the reception could be more mixed. Tzipi Livni, the foreign minister and leading candidate for Prime Minister from Ariel Sharon’s Kadima party, backs the Saudi peace plan in concept, including the division of Jerusalem. The Israeli Left supports it as well, with Shimon Peres and Ehud Olmert both endorsing the plan. Likud candidate Benjamin Netanyahu opposes it entirely.

The opinions of the people and leaders in Israel are the only ones I care about frankly. In fact I would tend to support it myself if I could be assured that this was “it”. As in any further negotiations asking for more from Israel are immediately ignored and any hostile action towards Israel is a declaration of war backed by the US and UN. This means boots on the ground not just rhetoric.

In other words, if this could “settle” the issue or at least be a giant step in that direction, great. That’s the biggest if we’ve seen in a long time though.

Dash on November 16, 2008 at 11:40 AM

I still like my gravy plan.

allahallahoxenfree on November 16, 2008 at 11:40 AM

I still like my gravy plan.

The let’s pass it, along with a large spoon as my potatoEs are rather bland.

Shivas Irons on November 16, 2008 at 11:43 AM

We’ll see more tax hikes as they attempt to deliver on their populist promises, which will damage the economy even further, and start a tailspin for the American economy that neither Rangel nor Obama can stop with their economic ideologies.

I believe that is one reason for the French Revolution — increasing taxes that produced less revenue.

And how about Charlie Rangel start paying his taxes before screwing us over our taxes.

rbj on November 16, 2008 at 12:01 PM

Great post Ed, keep an eye on Rangle – all hope ‘n change goes through ways and means. How about dropping corporate rates, then ending the deduction for health care plans. Companies will drop plans like hot potatoes. Then the Government will swoop in with “affordable” care, that will work great as long as you don’t mind waiting 6 months to see a doctor, assuming the doctor doesn’t leave the profession.

Mark30339 on November 16, 2008 at 12:08 PM

More and more I understand the beauty of the auto de fé.

BrideOfRove on November 16, 2008 at 12:15 PM

What a freakin mess.

johnnyU on November 16, 2008 at 12:17 PM

His “Hand in Every Pocket” plans come forth…..

DL13 on November 16, 2008 at 12:17 PM

This is going to be such a giant stuff-up. We can only hope that these useless twits spiral down into bickering and in-fighting and accomplish nothing, thereby accelerating the fade-off of the federal government into irrelevancy.

mr.blacksheep on November 16, 2008 at 12:25 PM

This will be the strategy:

The collectivist Dems will Put forth one unworkable proposal after another until we finally “compromise” on a less frightening version of the same horrible crap.

Buy Danish on November 16, 2008 at 12:27 PM

What ever happens next is a liberals fault.

Pinning the target on the donkey is our next job one.

Speakup on November 16, 2008 at 12:28 PM

How are the democrats going to pin the dramatic downturn in the economy around 2010?

jukin on November 16, 2008 at 11:10 AM

Let me give this a go: “It’s not the Obama economic disaster, it’s the BUSH economic disaster. BusHitler left the economy is such a mess that not even Jesus could fix it.” That’s how they’ll try to do it.

holygoat on November 16, 2008 at 12:30 PM

A chicken bone in every pot.

johnnyU on November 16, 2008 at 12:33 PM

Let me give this a go: “It’s not the Obama economic disaster, it’s the BUSH economic disaster. BusHitler left the economy is such a mess that not even Jesus could fix it.” That’s how they’ll try to do it.

holygoat on November 16, 2008 at 12:30 PM

FIFY

thomasaur on November 16, 2008 at 12:33 PM

“When Rangel talks tax cuts, always look for the fine print.”

It’s under the heading “LIES”.

Dusty on November 16, 2008 at 12:33 PM

I have a couple friends and couples who make quite a bit of money. The married couple have decided to get a divorce if the B.O. taxation of the rich comes into play.

Reason being is the Married couples sound like they are going to be taxed more then single people. My Friends will still BE together, but will be paying seperate taxes. They already have a plan concerning it.. since they both make decent money… from re-doing the mortgage in his name, to her paying for the eldests college.

I was impressed, but what I wonder is what happens if everyone no matter married or single get taxed the same.

upinak on November 16, 2008 at 12:36 PM

Libs lied, freedom died.

Mojave Mark on November 16, 2008 at 12:37 PM

Economic Ideologies + Social Engineering = Current Economic Collapse of Today

You know……………. elections really do mean things. When idiots like Rangal, Frank, Pelosi, Reid, and Dodd yield the power to destroy the basic fabric of the United States, and the Press doesn’t even bat an eye….. you know we are screwed.

I wonder what Mr. Obama, President Elect, the office of is going to do when no one wants to invest in the United States or create a single job?

Blame Bush….? Go ahead and try……. the Democrats are in control, you can’t hide from that now……… suckas!

Seven Percent Solution on November 16, 2008 at 12:38 PM

Buy Danish on November 16, 2008 at 11:33 AM

Don’t forget, Rangel was the one who was trying to bring back the draft a few years back. The Democrats were scaring people into thinking that their sons and daughters would be drafted to fight in Iraq (when the violence was raging; pre-surge) to get the people to vote the Repubs out. It was a stunt then that backfired because the Repubs killed it. Talk about a party of fear….

Dr.Cwac.Cwac on November 16, 2008 at 12:44 PM

Dr.Cwac.Cwac on November 16, 2008 at 12:44 PM

Cwac, he has been supporting it … forever! Last year was also when he brought it up and had a petition for people to sign to bring it back or not.

But then if he does bring it back via B.O., what is going to happen?

Will the Nation of idiots who are against the war freak out… or will the accept it via their “Savior”?

Who knows… Rangel needs to go away.

upinak on November 16, 2008 at 12:50 PM

I always thought liberalism smelled like a combination of pot smoke, petrulli oil and cat urine, now I know it smells more like “Constitution Burning”.

I was naive.
Now I’m armed.

Bicyea on November 16, 2008 at 12:56 PM

Rangel has a three-digit IQ. Unfortunately for him, the first two digits are zeroes.

whitetop on November 16, 2008 at 1:07 PM

I wonder what Officer Cardillo thinks of all this…oh right,he’s still dead thanks to scumbag Rangel.

campfreddy on November 16, 2008 at 1:13 PM

Pore ol Rangel…. the only guy in the world who would take financial advice from Joe Bidden.

Lincoln Cadillac on November 16, 2008 at 1:15 PM

Dr.Cwac.Cwac on November 16, 2008 at 12:44 PM

Yes, I know he wants the draft. That legislation was all about the draft. Maybe we could call it Draft Lite since with his plan you have a choice – serve in the military or do time as a “homeland security” or “community service” conscript.

Buy Danish on November 16, 2008 at 1:28 PM

Charlie Rangel is a real loser. Cheats on his income tax, takes illegal rent subsidies on multiple properties, tries to reinstate the draft knowing it will never pass. Then we see his HAPPY FACE posturing over the “cheating” business people he plans to destroy with higher taxes. Congress really is a big CESSPOOL–and he is one of the really big ones floating on the surface.

John Bibb

rocketman on November 16, 2008 at 1:30 PM

I know I’ve been griping ad nauseum about Rangel’s tax bill for at least six months now, and I’m not sure what the final product will look like, but one thing I am sure of is this.

There will be powerful disincentives in place within a year or so for me or any other self-employed people to hustle to do extra work and make more money.

Why McCain and other Republicans running for office this year could do no better on the tax issue than “Joe the Plumber” is beyond me. And Joe the Plumber was just dumb luck. If he hadn’t prompted a semi-honest answer from Obama, the subject would have gotten even less attention.

Pathetic.

forest on November 16, 2008 at 2:59 PM

Once upon a time, the thieves (Big Government) came to take the peoples (The Victims) money. The people resisted until the thieves told the people that the economy was a mess because there was a credit crisis and only some of their money would prevent a complete collapse and lose of all of their money.
Now it happens that this crisis was caused by the Big Government Federal Reserve Chairman lowering interest rates to the point that no-one could afford to save money and investors speculated wildly in commodities rather than the financial markets. The Big Government Congressmen mandated low interest loans to people who could not pay them off to buy houses they could not afford to buy.
Once these thieves discovered that the people could be fooled into giving up their money, 700 Billion, to bailout big financial institutions that did not deserve the Bush corporate tax breaks, that the thieves had set up for failure, the thieves laughed in delight.
Then came the parade of the benefactors of the thieves thievery. Before the ink was dry on the check for 700 Billion and while the ways to spend the taxpayers childrens and grandchildrens money was changed on a daily basis by the Treasury Secretary (The Master Thief) the cities (Philthadelphia), (Bostone), (New Yawk City?), the states (California), (New York?), (Maasitochits), and big corporations, who did not deserve the Bush tax cuts, (G.M., Ford) lined up for bailouts of their own saying, “if it is that easy who needs tax breaks, just steal the money from the children and grandchildren of taxpayers and give it to us as you did the financial institutions you caused to fail.”
So the thieves went back to the people demanding more money for the cities and states and automakers and told the people it was in their own best interest else they may lose all of their money.
Now normally the people would see through this scam, but having been enlighted by the National Education Association, protected by the Teachers Union and taught by government mandated “standards” the people did not understand. Add to this the fact that the news of the day was in the pockets of the thieves so the New Yawk Times, Washingtoon Post, ABC, NBC, CBS, MSNBC, CNN, told the people to go ahead and bailout the cities, states and big corporations, who did not deserve a tax break.
The people being annoyed at the intrusion and wanting to get on to American Idol or Entertainment Tonight said yes this is a good idea, besides the newly elected “One”, Barrack Obama, promised us tax cuts (95%), so we will give the thieves more of our money, because we will have our tax cuts paid for by the 5% and Big Corporations who do deserve tax cuts. We will have lots of money from those tax breaks (95%) so we can afford to help the thieves bailout cities, states and big corporations,
Thus came true the prediction that fact is stranger than fiction and the United States Of America became the Socialist States of America, Latin America, and Mexico. This became so in the year 2009 under the reign of “The One” Barrack Hussein Obama!

dhunter on November 16, 2008 at 4:04 PM

In addition to hiking the upper tax rate to 39.6%, Rangel wants an additional 4% added to those who make as little as $200,000 per year. That makes the overall tax rate for those incomes 43.6%, and it includes people whom Obama promised a tax cut during the campaign.

When do these Democrats realize they spook the stock market with inconsistent and nonsensical statements on taxes?

atemely on November 16, 2008 at 5:37 PM

Will I ever see my country again?

UncleZeb on November 16, 2008 at 6:08 PM

How on earth do people like Rangel get elected? There are so many of these lowlife jerks in Congress it makes me wonder if maybe the libs have it right. Maybe we ARE too stupid to take care of ourselves.

Dee2008 on November 16, 2008 at 7:33 PM

They have succeeded in dummying down our population by running our schools thru the unions to intentionally make our kids not understand capitalism.
THEY PROMOTE SOCIALISM IN PUBLIC SCHOOLS!

time2taketheglovesoffGOP on November 16, 2008 at 8:34 PM

Sounds like a classic bait and switch, at least as far as corporate rates and fine print goes. Someone else will ‘fix’ it so everyone pays more. Then toss in removing the FICA lid and add 6.5% to everyone over 100k for company FICA and another 6.5% for individuals, plus Mandated Employer Subsidized Socialism for health care (MESS) for another 7%, plus another 20 weeks of Unemployment Insurance, toss in Paid Leave, mandatory paid vacations, 32 hour work week, unionizing most everyone…

Did anything get left out?

droofus on November 16, 2008 at 11:59 PM

“How on earth do people like Rangel get elected? There are so many of these lowlife jerks in Congress it makes me wonder if maybe the libs have it right. Maybe we ARE too stupid to take care of ourselves.

Dee2008 on November 16, 2008 at 7:33 PM”

In Rangel’s case, it’s racism. He’s a “brutha” to 90+ percent of the voters in his district. Only his passing on, or becoming (more) senile will get him out.

Webrider on November 17, 2008 at 12:00 AM

Tax policy from the guy who doesn’t pay his own “fair” share. Rangel is a blithering idiot who should be somebody’s b*%ch behind bars right about now.

redfoxbluestate on November 17, 2008 at 7:40 AM

What an absolutely horrible plan!

Try again, Froggie.

hillbillyjim on November 17, 2008 at 8:03 AM

The only time this clowns isn’t lying when his lips are moving is when he is snoring. I trust a man with a mask and a gun in my face more than this thief.

Irvin88 on November 17, 2008 at 2:19 PM