NH GOP Calls on Hodes and Shea-Porter To Oppose The "MOTHER" of All Tax Hikes

New Hampshire Republican Party Chairman Fergus Cullen Calls On Representatives Paul Hodes And Carol Shea-Porter To Demonstrate Their Independence From Their Democratic Leadership And Oppose Representative Charles Rangel’s Nearly $1 Trillion Reform Plan For Higher Taxes

NH GOP Chairman Fergus Cullen: “If There Was Ever A Time For Paul Hodes And Carol Shea-Porter To Show Independence From Their Democratic Leadership, It Would Be To Oppose This $1 Trillion Tax Hike.”

Today, Democrat House Ways And Means Committee Chairman Charles Rangel (D-NY) Plan Unveiled The “Mother” Of All Tax Reforms At A Cost Of Nearly $1 Trillion. “[C]hairman Charles B.Rangel, D-N.Y., says [it] will be the ‘mother of all reforms,’ a nearly $1 trillion package including an alternative minimum tax (AMT) overhaul, higher taxes for private equity firms and corporate tax changes.” (Richard Rubin, “Treasury’s Paulson Finds Democrats Unreceptive To His Corporate Tax Agenda,” Congressional Quarterly Today , 10/3/07)

At Least 1.7 Million Americans Would Face A Tax Hike Under Rangel’s Proposal. (Russell Berman, “Taxes Would Rise For 1.7 Million Under Rangel Plan Due Today,” The New York Sun , 10/25/07)

Rangel’s High-Tax Plan Imposes A 4% Surtax On Americans Earning $150,000 Or More. “Upper-income families, however, would pay for that repeal with a 4% surtax on incomes above $150,000 for a single earner or incomes above $200,000 for a married couple. That surtax would grow to 4.6% for incomes above $500,000.” (John Godfrey, “Rangel Tax Plan’s Centerpiece Is 30.5% Top Corporate Rate,” Dow Jones Newswires ,10/24/07)

The Plan Also “Could Cause Pain And Anxiety For Many U.S. Companies.” “A major tax bill that is about to be unveiled in Congress includes two changes that could cause pain and anxiety for many U.S. companies. Under legislation set to be introduced tomorrow by the House’s top tax writer, businesses with foreign subsidiaries would face new limits on their ability to use foreign expenses, such as interest on debt, to reduce their tax bills in the U.S.” (Sarah Lueck, “Rangel Proposes Cuts In Tax Overhaul Bill,” TheWall Street Journal , 10/24/07)

Rangel Would Cut Corporate Tax Rates, But Would Replace Lost Revenue In Part By Eliminating An Existing Tax Deduction For Manufacturers Aimed At Keeping Production In The U.S. “Rep. Charles Rangel (D., N.Y.), chairman of the House Ways and Means Committee, has drafted legislation that would trim the 35% companies now pay to between 30% and 31%... The change would be funded in part by eliminating an existing tax deduction for manufacturers aimed at keeping production in the U.S.” (Sarah Lueck, “Rangel’s Corporate-Tax Bill May Frame Future Debate,” The Wall Street Journal ,10/23/07)

Rangel’s Plan Imposes New Taxes On Small Businesses In The Services Sector. “The plan also changes current laws to require small businesses in the services sector to pay payroll taxes for their workers.” (John Godfrey, “Rangel Tax Plan’s Centerpiece Is 30.5% Top Corporate Rate,” Dow Jones Newswires , 10/24/07)

And Raises Taxes On Private Equity Managers And Hedge Funds. “Part of the cost of the third section of the bill would be offset by taxing carried interest paid to financial managers as regular income and not as capital gains. The change wouldn’t apply to real estate investment trust managers. Revenue-raising measures in this third section also include a tax on deferred compensation plans of offshore hedgefunds and a requirement that financial service providers give customers information on basis of sold securities.” (John Godfrey,“Rangel Tax Plan’s Centerpiece Is 30.5% Top Corporate Rate,” Dow Jones Newswires , 10/24/07)