The amendment has several provisions that are anti-growth. It extends unemployment benefits and prevents cost-cutting Medicare rules from being implemented. However, the most troublesome provision is the absurdly named "Patriot Tax", which is a 0.5% surcharge on gross income on earnings over $500,000 a year or $1 million for a couple. The rate increase is higher than it appears, as deductions are taxed too.Here is the vote. One of those voting in favor was Congressman Fred Upton (R-Michigan).
This tax is anti-growth and will destroy jobs, pure and simple. It will lead to higher and higher income tax rates as Congress would likely keep adding such increases for other new spending. The tax will be especially harmful on small businesses whose owners sometimes file their business income on their individual tax return. In fact, the Tax Foundation reports (PDF) that almost 83% of all income tax returns with over $1 million in income are business owners. This tax will stifle innovation and job growth and should be vigorously opposed.
Monday, May 19, 2008
Upton Votes for "Patriot Tax"
The House of Representatives recently voted on a bill to raise taxes on the rich, dubbed the "Patriot Tax" by democrats. Here is the Club for Growth's description.