Chairman Rangel’s “Tax Relief” Plan Largest Tax Increase in History

Washington, DC – Chairman Charles Rangel (D-NY) has just released a tax proposal that would increase taxes by an estimated $3.5 trillion, making it the largest increase of individual taxes in history.

Among the bill’s provisions are dramatic increases in the top marginal rate faced by individual taxpayers. All Americans would be affected by this increase in taxes, but many women would be particularly hurt. This bill would create a significant new marriage penalty and discourage many married women from working.

The higher marginal tax rates would affect not only individual workers, but numerous small businesses that file tax returns as individuals will see their taxes rise. Small businesses play an important role in our economy, driving growth, creating jobs, and encouraging innovation. These punitive taxes will discourage entrepreneurship and impede America’s economic progress.

Chairman Rangel’s plan would also discourage investment and risk taking by changing the tax treatment on partnerships. Venture capital funds, real estate investment partnerships, and hedge funds play an important role in the creation of new businesses. Levying higher taxes on these partnerships will discourage entrepreneurship, an engine of economic growth.

“This bill is the wrong direction for American women-we need less taxation, not more. High taxes stifle economic growth, reduce job creation, and leave families with less money to spend as they see fit,” said Carrie Lukas, Vice President of Policy and Economics at the Independent Women’s Forum.

The United States needs tax reform that makes the tax code less complicated and encourages work and investment. IWF believes Chairman Rangel’s tax proposal moves in the wrong direction and urges congress to go back to the drawing board.