Taxes on top 2 percent are going to increase, Rangel says

by Lucas Tomlinson

Today on “Power Play with Chris Stirewalt,” Harlem Rep. Charlie Rangel was asked what Republicans should be doing to help rescue the country from the “fiscal cliff.” Rangel responded, “They should recognize the election is over."

"Republicans have made some hard and fast commitments that were more in line with a political campaign than what is good for the country. It’s very difficult for the Speaker to count on their support when they don’t know how to turn around,” he said.  Rangel added, “One of the things that’s abundantly clear: the taxes on the top 2%--the rates are going to increase. How they find ways to say that?…I don’t know.”

Rangel insisted that Republicans capitulate on this issue before addressing savings in spending programs, something Republicans have long demanded.

“But if you hold on to these commitments to outsiders--non lawmakers about, ‘under no circumstances will we increase taxes on anyone, including the rich,’ it’s just not going to work,” Rangel predicted.

Speaking optimistically about the future, Rangel said, “Fortunately, a lot of Republicans in the House and Senate recognize this and they are coming back to reality.”
When asked why it matters where additional revenue comes from if the net result of deduction reductions or tax rate increases is the same, Rangel said it was a matter of fairness.

“It matters because we rely on a voluntary income tax system. People must truly believe the system is fair … now it is true that we can bring in a lot of money, a lot of revenue, by closing loopholes, but that is going to happen anyway. The rates, as many have said, are not going to bring in a lot of money, but the equity of the system … small millionaires who became billionaires must recognize that the rates will change as their fortunes have increased.”

“Power Play with Chris Stirewalt” can be seen Monday through Friday at 11:30 on live.foxnews.com