Romney Specifies Deductions He'd Cut

wsj ^ | 4/15/12 | s murray

[bestintxas]

Mitt Romney, speaking at a private fundraising event on Sunday, offered the first details of deductions he would eliminate or limit in order to offset the income tax cut he has proposed for all taxpayers.

Mr. Romney, the presumptive Republican nominee for president, said he would eliminate or limit for high-earners the mortgage interest deduction for second homes, and likely would do the same for the state income tax deduction and state property tax deduction.

He also said he would look to the Department of Education and the Department of Housing and Urban Development for budget cuts.

Mr. Romney discussed his plans while speaking to high-dollar donors at a private estate. During the backyard event, which could be heard by reporters outside on a public sidewalk, Mr. Romney offered policy specifics he has yet to unveil on the campaign trail.

Republican presidential candidate Mitt Romney, shown last week, offered the first details Sunday of tax deductions he would eliminate. .Mr. Romney has pledged a 20% cut to income tax rates for taxpayers in all income brackets but has offered few details for how he would pay for the proposal. Mr. Romney also has vowed to bring federal spending under control, while offering few details on which programs he would cut.

President Barack Obama recently criticized Republicans on the point, saying they hadn't specified which programs they would pare back.

"I'm going to probably eliminate for high-income people the second-home mortgage deduction," Mr. Romney told supporters at the event Sunday. His plans could allow him to keep the same level of tax revenue but to lower rates, which he said would allow small businesses to keep a larger share of their earnings and expand

[COBOL2Java]

Why are the candidates not talking about cutting the size of government, limiting entitlements, and lowering taxes? The ink is not yet dry on my 'fair share' and if my 'fair share' goes up any more I'm going to go broke. Why will the RNC not at least try to establish a different narrative?

Maybe because they're all singing from the same hymnbook?

[flintsilver7]

There are plenty of criticisms of Romney. However, when you add a subtitle stating “(RINO already talking up more taxes rather than tax cuts)” when the first line of the linked article mentions across-the-board tax cuts, you do not come off as credible. It’s just dishonest.

Flattening the tax code necessarily entails removing deductions. It’s not hard to understand.

[Drew68]

Only RomneyBots read that line and since you read it, you must be a RINO ROMNEYBOT!!!!!

Oops. I forgot to throw "HOMO-LOVING!!!" in there.

Sorry 'bout that.

[taildragger]

Good post...

Yes that 1/3 boggie.

I did the quick math, if we don't touch entitlements and go after the rest the burden they shoulder was something like 62.5% cuts. Given what sucessful CEO's do to turn a company around ( Ford's Mulally and his 40% cuts right off the bat ), this 60 something percent cut, might be a great wake up call.

The question is, does the Bain Capital side of Willard have the Cohones to do it to Fedzilla.

Imagine, NPR, AMTRAK, and so many departments closed or consolidated for starters before we tackle "entitlements"

We need a dream list from Heritage, Cato and "Martin Gross"...

And that is just for Starters...

[Carry_Okie]

Mr. Romney, the presumptive Republican nominee for president, said he would eliminate or limit for high-earners the mortgage interest deduction for second homes, and likely would do the same for the state income tax deduction and state property tax deduction.

This would destroy middle class home ownership in what is left of high-tax states like California. If you think the mortgage and banking crisis is bad now, you ain't seen nothin' yet.

[TexasFreeper2009]

you dont have to OFFSET tax cuts! they pay for themselves by growing the economy!!!

Only liberals believe that tax cuts have to be “paid for”

[Zhang Fei]

What do you think this proposal will do to the real estate market and homebuilding? Do you think disallowing mortgage deductions like he is proposing will improve or worsen this?

The Federal government is overly entangled in the real estate market. Eliminating the real estate deduction will eliminate yet another market distortion introduced all those years ago for no good economic reason as a sop to real estate developers. If we're going to subsidize an industry, I think we'd be better off subsidizing natural resource extraction or alternative energy research rather than something like home building.

[Chgogal]

This is BS. How many second mortgages are out there? Enough to grow the economy?

I want to hear about the big things he's going to do. I want to hear about conservative policies that will grow the economy not where he's putting the 2nd mortgage deck chair vs. the state tax deduction deck chair.

I want to hear, how he will grow the private sector instead of public sector by cutting regulations at all levels. I want him to explain how cutting taxes to the private sector puts more in their pocket which puts more money in the economy to invest as each citizen sees fit. I want to hear how giving money to GIANT GOVERNMENT is just laundering hard won tax payer money. I want him to prove with stats how Kennedy's and Reagan's policies grew the economy and how Socialist Policies the WORLD OVER have failed to do that.

To date I have heard NADA!

He needs to step up and represent what historically have been very successful policies here at home and abroad.

[dfwgator]

Taxes are a political shell game, you make a cut in one place, and you wind up paying more in the other. In the end, it always winds up washing out.

[flintsilver7]

I already know you’re unable to be objective, but are you unable to read as well? Romney did not advocate raising taxes. Romney talked about flattening taxes, which necessarily has to be done by removing or limiting deductions and lowering rates.

What would eliminating the deduction for mortgage interest on second homes do? I have no idea. I do know that second homes represent about 6% of the total market, so my guess is not that much. How much of that is purchased by people who finance isn’t something I know. What Romney means by “high earners” isn’t something I know either, but your “blue collar workers in Michigan” probably don’t qualify as “high earners.” I’m not worried about that. I would be worried if he advocated removing the mortgage interest deduction on primary residences like Democrats have done (and continue to do).

You can believe whatever you want about Romney, but if you seriously believe his administration would not be orders of magnitude better than the current one, you’re out of your mind.

Just be honest. It’s not that hard.

[dfwgator]

I meant to add, the point being, is that it’s not the taxes, it’s the spending.

[Zhang Fei]

you dont have to OFFSET tax cuts! they pay for themselves by growing the economy!!! Only liberals believe that tax cuts have to be “paid for”

Actually, they don't pay for themselves. This is why Federal deficits have ballooned since the Reagan tax cuts. The Reagan philosophy was to starve the beast, in hopes that bigger deficits would lead eventually to spending cuts, as politicians woke up and realized that the country's finances were approaching the abyss. Instead, politicians of both parties simply got comfortable with gargantuan deficits, which is why our debt levels spiked, starting with the Reagan years and have never looked back:

What's particularly amazing is that we fought the Vietnam War and instituted the Great Society programs without bringing the debt up to present levels, as a % of GDP. Cutting taxes doesn't starve the beast (spending), because the beast is clearly morbidly obese. What it's done is run up ever-increasing charges on the national credit card.

[longtermmemmory]

high income means you can afford a second home.

It is not just land houses. This also affects the private boat industry. (remember the luxury tax debacle?) Live aboard class boats can be a second home. (also camping vehicles)

[faithhopecharity]

Yes and movement to simplify taxes would be very good. But where’s the firm commitment to a substantial tax rate reduction that should accompany eliminating so many significant deductions for so many working people? Without cutting the rates down to size, this is little more than a huge tax increase. (And very, very poor politics.) Or have I missed something?

[faithhopecharity]

Ok I see now. A promised 20 pct rate cut. Sorry I overlooked that. This is still a fairly small step in light of the need to resurrect the economy (with far, far lower rates and tax simplification). (Ps: why would his political advisors let him propose eliminating a couple of the most popular deductions when there are so many others that could be sacrificed with far less loss of voter support? A mystery). Well it sounds a bit better than the constant talk of higher and higher taxes.

[alancarp]

Trouble with Mittins, of course, is that we all know he'll say anything to get elected.

Our best hope is a conservative [R]-controlled House.

[SoFloFreeper]

He is better than Obama, but this kind of CRAP does NOT need to be in any bill passed by the House and Senate. Romney,.as Rush has said, will need to be PUSHED to the right. He can be pushed in the right direction....Obama is an idealogue.

[SoFloFreeper]

He is better than Obama, but this kind of CRAP does NOT need to be in any bill passed by the House and Senate. Romney,.as Rush has said, will need to be PUSHED to the right. He can be pushed in the right direction....Obama is an idealogue.

[andyk]

Complain all you want, but this looks like a step towards a flat tax.

Existing credits, including the child credit are far more insidious than any state income tax deduction. I don't think anyone will have the guts to challenge credits, though.

[Zhang Fei]

high income means you can afford a second home. It is not just land houses. This also affects the private boat industry. (remember the luxury tax debacle?) Live aboard class boats can be a second home. (also camping vehicles)

This is different from the luxury tax because the luxury tax discriminated against luxury consumption. The removal of home mortgage deductions merely removes the present discrimination in favor of loan-based home purchases.