EzraKlein’s WONKBLOG at the Washington Post website has reported that we now have “Tax Plan Specifics! From Mitt Romney!”.
Well,one possible specific.
“ABC News reports that Mitt Romney toldDenver’s Fox affiliate that ‘one option’ he was considering to pay for his taxplan was to give everyone up to $17,000 in deductions, but no more than that.”
Romneyexplained -
”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 lowernumber.”
Thisspecific is not specific enough, and raises questions.
Woulda married couple be limited to $17,000, but 2 single individuals living togetherbe allowed a total of $34,000? Or wouldthe limit be $17,000 for Single, Married Filing Separate, and Head of Householdand $34,000 for Married Filing Joint?
Wouldthe choices of what you can use to “fill your bucket” be reduced, or would allcurrent deductions, under current law, be available? Would other deductions and benefits currentlyallowed elsewhere now be available only as itemized deductions subject to thelimitation?
Idon’t like this idea. If we are going tocontinue to allow itemized deductions under a simpler Tax Code, then thedeductions that remain will do so for a purpose. And if a deduction is worth keeping it shouldnot be limited.
Obviouslysome currently allowed itemized deductions would not be continued in the newsimpler Tax Code – perhaps those for taxes and mortgage interest on properties otherthan one’s primary principal residence.
Besides,the problem with inappropriate “tax expenditures” that create “tax non-payers”lie more in adjustments to income and tax credits then they do with itemizeddeductions.
This idea just adds more complexity to the Tax Code, especially as Romney has hinted that "higher income people might have a lower number”, suggesting additional AGI-based limitations. We don't need more complexity - we need simplicity.
Atleast it shows that Mitt is thinking about tax reform.
TTFN
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