Bush Tax Panel Considers Limiting 2 Popular Deductions

New York Times ^ | October 11, 2005 | DAVID E. ROSENBAUM

[mysterio]

WASHINGTON, Oct. 11 - President Bush's tax advisory commission indicated today that it would not propose replacing the income tax with a national sales tax or a value-added tax but would recommend modifications in the popular tax deductions for mortgage interest and employer-provided health insurance.

(Excerpt)

[mysterio]

I did a search for this article, but I couldn't find it posted yet here. If I have duplicate posted, I apologize.

[oceanview]

if this goes through - this "tax committee" is really the Hillary 2008 election committee.

[Rokke]

Repeat after me...The New York Times lies. The New York Times lies. The New York Times lies.

[mysterio]

This should make the proponents of the VAT mad. That would be the Fairtax, right? I kind of prefer the flat tax idea.

[MJY1288]

The Tax Panel needs to be fired and their pay withheld

[IRememberElian]

Why does the POTUS need a committee? He can't express an opinion?

[drt1]

Hell, they've been eliminating deductions, and the ability of the average taxpayer to avail himself of their benefits, for the past 15 years. This, in conjunction with the Alternative Minimum Tax, has been a stealth increase in the taxes paid by Middle Income homeowners. For most it is getting much more difficult to avoid taxes through Itemization and that is the objective of this process.

[flashbunny]

'deductions' are either one of two things:

1. an attempt at social engineering - influencing behavior by rewarding what you want done by allowing the serfs to keep a few more coins

2. A way to buy influence and get donations from certain groups.

In a just country, there would be a flat tax for all taxpayers, no deductions allowed. But that would eliminate the ability of lawmakers to get campaign contributions by promising deductions, and would limit their ability to try to micromanage our lives.

In short, it would no longer be fun for them. And they just can't have that.

[HitmanLV]

Removing the personal interest deduction in the late 1980s was horrible.

[mysterio]

I would like to see all witholding eliminated. Send everyone a monthly bill. Then we will never have to fight to get the average citizen riled up about high taxes again. Can you imagine the size of the monthly bill? It would be as much as rent in some places.

[drt1]

Agree re: The rationale for deductions and the need to eliminate their corrosive influence. The problem is, the deductions will be eliminated for the Middle Income Homeowner sector but the marginal tax rates will remain the same or increase resulting in a substantial increase in the taxes paid by what is arguably the most deserving of tax relief.

[Patti_ORiley]

If the federal government makes any 'adjustments' negatively affecting the home mortgage deduction, you will see a mass revolt in this country.

[cherry]

I think they should add all the frequent flyer miles that company people get for free to that employee's income.....if he uses the miles....

and I think they should pay income taxes on all the other freebies they get....like prime football/basketball tickets.... like the use of the company jet or boat or company car......

why should some get these extravagant freebies and the rest of us pay taxes on every single thing.....

[Blessed]

The fair Tax and a Vat tax are totaly different.

[sheana]

I read an article the other day (can't remember where), a study that showed that the best guess was 40% of income in the country goes to taxes of all kinds. Of course alot of "taxes" are hidden as "fees" so it is probably higher. We threw tea in the harbor for alot less than that. We Americans need to grow a spine and use it against ALL politicians.

[mysterio]

I'm not holding out much hope that anything would motivate that. As long as people have TV sports and Doritos, they'll take most government intrusion and robbery with a big smile on their faces.

[Cicero]

Hmm. The headline is misleading.

At its last meeting in July, the commission agreed to recommend abolishing the alternative minimum tax for individual, a step that would cost the federal government $1.2 trillion in lost revenue over 10 years.

It would be a huge step forward to abolish the AMT, which the Times obviously deplores. If they abolish that, the mortgage deduction, and medical deductions, it would be a move toward simplification as well. Of course this would hit different people differently, depending on their situations. I have no mortgage, but I have a large family and large medical expenses. I also get nailed every year by the AMT, as do more and more taxpayers every year.

[drt1]

Yep. That was the first step in the process I described. Not much later they tied Medical and other Schedule A deductions to the Adjusted Gross Income, effectively reducing these. They then capped it off with the AMT. Just another gradual, stealth way of increasing the overall tax burden to support the inexorable growth of Gov't at all levels.

[pierrem15]

It would be as much as rent in some places.

No kidding. It's more than my mortgage, including the property taxes.