Posted on 11/27/2012 3:30:26 AM PST by tobyhill
With the “fiscal cliff” looming and no “grand bargain” in sight, talk in Washington has turned to a “down payment” — a package of spending cuts and revenue increases that would help us avoid the cliff and give leaders more time to strike a long-term deal. House Speaker John Boehner says such a mini-deal would serve as “a down payment on — and a catalyst for — major solutions, enacted in 2013, that begin to solve the problem.”
Unfortunately, the opposite is true. Passing a down payment now could very well doom the chances for major tax and spending reforms next year.
Since Republicans are (for the moment) holding firm to their opposition to raising tax rates, the only way to increase revenues in a down payment is to close loopholes and limit or eliminate deductions — something Republicans have expressed a willingness to do as part of a larger deal for tax and spending reform.
Since Republicans are (for the moment) holding firm to their opposition to raising tax rates, the only way to increase revenues in a down payment is to close loopholes and limit or eliminate deductions — something Republicans have expressed a willingness to do as part of a larger deal for tax and spending reform.
As the Wall Street Journal recently pointed out, there’s a lot more revenue here than most people realize. According to the liberal Tax Policy Center, capping all itemized deductions at $50,000 a year would yield $749 billion in extra revenue over 10 years — almost as much as the $823 billion that President Obama’s plan to raise tax rates on top earners would yield in the same period. Moreover, such a cap would soak the rich first. The top one-fifth of income earners would pay more than 96 percent of the higher taxes.
(Excerpt) Read more at washingtonpost.com ...
LLS
Since Republicans are (for the moment) holding firm to their opposition to raising tax rates...
The “tax raising” Republican lemmings are coming out of the closet everywhere and caving into the Dems on raising taxes.
They can’t help if for they are the “go along to get along” party and are doing what comes naturally. They consider a compromise in which the Dems get 90% and they get 10% a “win-win” situation.
Don’t worry. Boner will get boned.
Toss out the 1000 page book that is the tax code and we'll save billion$ in time spent doing taxes and have better compliance
Remember that any “deal” is designed to blunt spending cuts, there will be no spending cuts.
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