Posted on 10/02/2012 7:52:58 PM PDT by RaisingCain
In an interview Monday night with Denver TV station KDVR, Romney said, "As an option you could say everybody's going to get up to a $17,000 deduction. And you could use your charitable deduction, your home mortgage deduction, or others — your health care deduction, and you can fill that bucket, if you will, that $17,000 bucket that way. And higher income people might have a lower number."
A Romney adviser said changes in other areas — a taxpayer's personal exemption and the deduction or credit for health care — would also be taken into account if deductions were limited as Romney suggested. Combining changes to those two areas with the limit on deductions would maintain Romney's goal of keeping tax burdens the same for wealthy and middle income taxpayers, the adviser said.
(Excerpt) Read more at newsday.com ...
Seventeen Thousand in deductions would cover a good number of people. It would be a little less than I take.
Frankly, most deductions should be abolished. Not the charitable contributions, because that isn’t really a deduction, since if you give the money away, you never really earned it — it is just like donating your time to a charity, and they don’t tax that, so why tax cash you give from working?
You could also argue for deducting other taxes, since you shouldn’t have to pay tax on taxes. But the mortgage interest deduction is government manipulation, paying you to do what they think is best. Either all interest should be deductable, or none. Fair would be to tax interest, but only over the rate of inflation.
” - - - the adviser said - - - “
I’ll bet that was a Haaaaaaaaaaaaaaaaaaaaaaaaaaaaarvud “adviser.”
Herman Cain wanted to cut all the deductions, so this should be popular with some posters.”
Yeah, but it was going to be come with an actual tax cut to 9 percent on individuals, businesses and a sales tax. The effect would be astounding, and would be a good first step to moving straight into a pure fair tax system.
The entire purpose of Romney closing deductions is just to insure that people are paying generally the same amount they were before.
The real argument, instead of caving into the leftist accusation that cutting taxes will not be deficit neutral, is just to make it clear that spending will be cut for any alleged shortfalls, and that tax reform in and of itself would spur job creation and, therefore, government revenue. Instead, Mitt is accepting their argument and essentially saying that he isn’t really cutting taxes. Meanwhile, the left is arguing that Mitt isn’t just cutting taxes for the rich, but is going to raise taxes on the middle class to pay for it. This is like loading your gun and putting it to your head. I’m not seeing any real plan or purpose being promoted here. Cain was magnificent because his purpose was precise and bold. Romney’s plan is neither precise nor bold, and when it gets precise, it decides to get bold with a losing message.
Flat tax no deductions and everybody pays!
Spectacularly bad idea
We should eliminate the standard deduction. it is a payoff to those who vote for government handouts.
The first $17,000 is not taxed , an option instead of the mortgage interest deduction, which those who, have paid down or off mortgage /rent /live in parent’s basement, would benefit.
It's not a gimmick. If you expand the tax base (meaning: get those who AREN'T paying any Federal Income tax now to actually start paying) then you can lower the rate for everyone else.
Look at it this way: I can collect $100 in taxes from 1 person, or $100 in taxes from 4 people paying $25 each.
It's been proven time and again, when the tax rates are LOWERED, the Federal Government actually gets MORE "revenue" (tax payments.) It was true when JFK did it, true again when Reagan did it, and true again when GW Bush did it.
I doubt there are a “lot” of families with over $17,000 in itemized deductions. And eliminating deductions isn’t raising tax rates. It is getting government out of the job of picking winners and losers, of using tax dollars to bribe people into doing the government’s bidding.
I suppose it could work, if an only if rates were lowered to about 5%.
Oh, hell throw the whole code out and go for a flat tax of 10%, with the first 25K exempt.
You have an idea Charles?
1. Forgive a million illegals.
2. Kill the housing market by removing the mortgage interest deduction.
3. Keep the lid on investment income tax deduction (like his 14%).
And I try to defend this guy.......?
“My first home loan was at 13%.”
Jimmy Carter years?
>> Thats ok. It removes the biggest straw man argument against the Fair Tax.
Winning elections is about gratifying the primates.
Cain’s problem was double-taxing savings, because you paid full income tax, and then have to pay the 9% sales tax. Along with implementing three separate taxes, all of which could easily be raised, putting us in worse shape.
That would be my preference. Either we ALL have skin in the game, or we all don't.
The mortgage deduction is essentially a tax on renters, a particularly regressive tax since renters are likely to be lower income individuals. It’s unfair. I shouldn’t be penalized for renting by being denied a deduction on my taxes.
A flat tax with no deductions is the only moral, fair way to tax. We need to get as close to that as fast as possible. If you don’t have that, you have a system that punishes certain groups of people for their personal decisions as free people.
It also has the benefit of greatly simplifying the process of paying taxes, which frees up so much money to put into real production of goods and services instead of the simple “overhead” of being a citizen.
“Cain’s problem was double-taxing savings, because you paid full income tax, and then have to pay the 9% sales tax. Along with implementing three separate taxes, all of which could easily be raised, putting us in worse shape.”
The 9 percent sales tax was replacing embedded taxes we already pay for. These are taxes businesses are paying right now that are simply passed down to the consumer. On top of that, the 9 percent is only on what you spend. Unless you’re spending every dollar you bring it, it’s not 9 percent again on your entire income. There was also no sales tax on used items.
Of course, it doesn’t matter now. Cain ain’t coming back.
Just give me a obamaphone and a school lunch. I be happy.
Lower the tax rate and eliminate all but charitable. The tax code is a way of manipulating people to do what you want them to do. Those should be economic decisions.
Pray for America
It's not easy to raise a tax that a majority of the citizens pay.
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