This isn’t new. This came out early on in the Primaries and was even discussed on Free Republic for at least one thread. It was from a donor meeting that was allegedly supposed to be secret, but we found out about it anyway.
I don’t think Mitt comprehends that it’s at all risky or a problem.
I’m still trying to figure out though the point of lowering taxes just to get people to pay about the same amount via closing loopholes and deductions. It’s the same gimmick he pulled in his home state, and I truly do not understand what the selling point is. A simpler tax system?
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.
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.
“A simpler tax system?”
Truly, it should be simpler.
I’ve prepared my own taxes forever and now I’m actually a part time paid preparer for a major tax prep chain whose name I will not say (like I was on a game show!).
The tax code is ridiculously complicated, there are all sorts of income limits (but not THE SAME income limit) for various deductions. There are all sorts of convoluted accommodations that have been made due to the dissolution of the standard family unit (see: qualifying relative, qualifying child, earned income tax credit, head of household filing status). There are all kinds of crazy credits that might/might not come into play.
And bear in mind, I’m only qualified to do a return for an individual or family. I’m not doing any returns for businesses, other than those who are self-employed.
As a bookkeeper I did do EMPLOYER payroll tax returns (Federal, NY and NJ) for many years. Those are also ridiculously complicated with all sorts of income limits (but not THE SAME income limits), etc.
I’m very smart, and obviously I’m into this stuff. In fact there’s real thrill I get when I start out with a nice, blank 1040 and am ready to solve the puzzle of what Mr. & Mrs. X owe to Uncle Sam.
But, in all reality, it shouldn’t be that way. It shouldn’t be a puzzle and it shouldn’t require a person to be “smart” or “into it”.
As Free Americans it should be simple and easy for each of us to determine how much we need to “kick in” for our government to keep running for another year.
And let me state for the record, I am 100% unwilling to pay one penny more than I already pay.
So, work it out. It’s such a knot now I’m pretty sure the price of simplicity is already in there, somewhere.