Rangel Legislation Would Repeal Alternative Minimum Tax, Extend 2001 Tax Breaks

House Ways and Means Chairman Charles Rangel (D-NY) has introduced legislation that would repeal the Alternative Minimum Tax after 2007, extend tax cuts enacted in 2001 for an additional year, and reduce top corporate marginal tax rates, for a total reduction in taxes of up to $1 trillion over 10 years.

The earned income tax credit would be expanded and the child tax credit would be increased in the proposed legislation, the Tax Reduction and Reform Act of 2007. Offsets in the form of surtaxes on the highest earners of between 4 percent and 4.6 percent and other tax hikes could result in a revenue neutral tax bill.

Tax and policy analysts express doubts that much of Rangel's reform plan will pass anytime in the near future if at all. But it does provide insight into the tax ideas that may be considered by this Congress. For more information please read the Tax Reduction and Reform Act of 2007.