October 25, 2007
HP-646

Paulson Statement on Chairman Rangel's Tax Proposals

Washington, DC--The Treasury Department released the following statement from Secretary Henry M. Paulson, Jr. on the introduction of Chairman Rangel's tax overhaul legislation.

"In February the President proposed in his budget an AMT patch without raising any other taxes.  This is the right policy. 

"It is obvious that Congress does not have the time this year to undertake a large, complex tax bill, and I am increasingly concerned that we are not seeing timely action on an AMT patch.  We have only weeks to act to avoid the risk of unintended tax increases or significant delays for taxpayers receiving refunds.

"The legislation unveiled today would dramatically raise taxes in ways that in my judgment would hinder America's ability to compete in the global economy.  The proposed new surtax on individual income would burden millions of small businesses, and undermine job creation.  The corporate proposals will hurt the ability of our businesses and workers to compete in a global economy.

"I appreciate that Chairman Rangel wants to look at our corporate tax structure in the context of competitiveness, and I have had constructive preliminary conversations with the committee on this subject, building on Treasury's own work on business tax competitiveness. I have said we need to do more work on this, and we look forward to continuing that discussion.  This is a separate and longer-term discussion.

"As our economy grapples with a housing downturn, the last thing we need is a tax increase.  I urge the Congress to take up the AMT patch as quickly as possible."