Fact Sheet: The "Mother of All Distortions": Attacks on Rangel AMT Plan Not Based On Reality
Publication Date: February 2008
Author(s): Aviva Aron-Dine
Republican congressional leaders have sharply attacked House Ways and Means Chairman Rangel’s proposal to replace the Alternative Minimum Tax with a tax surcharge for very-high-income households as a massive tax increase that would seriously damage, even “doom,” the economy. In fact, however, the Rangel plan is not a tax increase. Moreover, it would create a tax system that is simpler, more progressive, and likely better for the economy than either current law or the idea favored by many of the plan’s critics: eliminating the AMT without paying for it.