Thursday, October 25, 2007

Shocker: Democrats Lower Taxes On Big Business...But Wait...

I could hardly believe it when I saw this headline:
Rangel Tax Plan's Centerpiece Is 30.5% Top Corp Rate
The next time you hear someone say that the Republican party is the party of big business, think about this article.

But, don't worry, the world is not ending (it's not really a Democrat tax decrease). If you read into the story, it goes on to describe how this tax cut on the biggest businesses would be recovered: it would repeal a tax deduction for domestic manufacturers, and it would prevent companies from using an accounting method known as last-in, first-out, or LIFO, that can cut their taxes during times of rising prices.

And, here's the big kicker: upper-income families 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, and 4.6% for incomes above $500,000.

So, there's the latest Democrat tax plan:
- cut taxes for big business
- repeal tax deduction for domestic manufacturing (what do you think that'll do for outsourcing of manufacturing jobs?)
- eliminate LIFO, which helps companies stay profitable during rising prices
- slap the rich with a huge tax increase

Tax, tax, tax. It's the Democrat way. Just keep in mind that this plan will end up being a $1 trillion tax increase!!!

There's my two cents.

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