Aims To Close Tax Loopholes and Make the Tax Code More Equitable

New York, NY - Congressman Charles Rangel announced today his plans to introduce legislation that will reform the current U.S. tax code as it pertains to corporations to make it more equitable by eliminating tax loopholes and lowering the rates for all businesses, which at 35% is the second-highest corporate tax rate in the world.

"There will clearly be winners and losers. Too often, companies make economic decisions based on tax rules rather than the conditions of the market. Closing certain tax loopholes will reduce the corporate tax rate to allow U.S. companies to compete in the international market," said Rangel who as chairman of the House Ways and Means Committee in 2007 introduced the Tax Reduction and Reform Act to overhaul the tax code.

"It doesn't make any economic sense that the largest corporations paid more to their chief executives last year than they did to the federal government in taxes," said Rangel, referring to a recent study by the Institute for Policy Studies that showed that a variety of shelters, loopholes and tax reduction strategies allowed top 25 U.S. companies to average more than $400 million each in tax benefits that can be written-off against earnings in future years or taken as a refund.

"The current tax code is unfair. I hope more of the superwealthy in America would follow billionaire Warren Buffett's lead, just like the wealthy elite in Europe who have recently joined him to say they're willing to pay their fair share," said Rangel. "At a time when the working people are struggling to make ends meet, where is the shared sacrifice?"

Currently, low and moderate income individuals pay payroll taxes, which include Social Security and Medicare, as well as federal and state income taxes at a higher rate than the rich. The wealthy receive dividends which are taxed at 15% rate; they do not pay Social Security or Medicare taxes on their investment incomes.