Senior Democrats eyes tax code overhaul

WASHINGTON, Oct. 26 (UPI) -- A senior Democrat in the U.S. House of Representatives has drafted a bill that he refers to as the "mother of all tax reforms."

U.S. Rep. Charles Rangel, D-N.Y., chairman of the House Ways and Means Committee, said his bill "would reform the tax code to provide a greater sense of equity and fairness," CNN/Money reported Friday.

Experts in tax policy said Rangel's bill is likely to be a hot topic for debate in 2008.

"This is a view of coming attractions," Greg Valliere, chief strategist of policy research firm Stanford Washington Research Group, told CNN/Money.

The bill, which includes a provision to extend the Alternative Minimum Tax patch that prevents 21 million taxpayers from being forced to pay the so-called wealth tax, as well as measures providing greater amounts of tax credits to low-income families and raising the standard deduction.

However, Republicans have said the bill does more harm than good.

"The basics of the package are simple: This is the largest individual income tax increase in history," House Ways and Means Ranking Member Rep. Jim McCrery, R-La., said in a statement.

Treasury Secretary Henry Paulson warned Rangel's tax code overhaul would "hinder America's ability to compete in the global economy," the Los Angeles Times reported.