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Sun Oct 14, 2012, 11:09 AM

Repealing Deductions Pays for 4% Tax Cuts, Study Says

http://www.bloomberg.com/news/2012-10-12/repealing-deductions-pays-for-4-tax-cuts-study-says.html

Immediate repeal of some of the most popular tax benefits would pay for only a 4 percent cut in U.S. income tax rates, according to an estimate by Congress’s nonpartisan scorekeeper that illustrates the mathematical and political challenges of financing rate cuts by limiting tax breaks.

The analysis by the Joint Committee on Taxation emphasizes the difficult choices facing lawmakers as they balance the benefits of rate cuts against the consequences of changing or ending deductions, such as for mortgage interest and charitable contributions. Republican presidential nominee Mitt Romney proposes a 20 percent income-tax rate cut and says he would pay for it by limiting deductions, credits and exemptions.

While there are major differences between the assumptions underlying Romney’s plan and the JCT study, the findings emphasize shortcomings in Romney’s approach, said Daniel Shaviro, a tax law professor at New York University.

“There really is no serious dispute that the parameters of their plan can’t be met,” Shaviro said. “It’s like saying you’re going to drive from Boston to Los Angeles in 10 hours without speeding. There’s just no way to make the numbers add up.”

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Reply Repealing Deductions Pays for 4% Tax Cuts, Study Says (Original post)
xchrom Oct 2012 OP
Tennessee Gal Oct 2012 #1
Jim__ Oct 2012 #2
liberal N proud Oct 2012 #3
jsmirman Oct 2012 #4

Response to xchrom (Original post)

Sun Oct 14, 2012, 11:29 AM

1. This should be spread far and wide!

“There really is no serious dispute that the parameters of their plan can’t be met,” Shaviro said. “It’s like saying you’re going to drive from Boston to Los Angeles in 10 hours without speeding. There’s just no way to make the numbers add up.”

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Response to xchrom (Original post)

Sun Oct 14, 2012, 11:46 AM

2. This needs lots of media coverage - and also Obama mention at the debate. - n/t

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Response to xchrom (Original post)

Sun Oct 14, 2012, 11:50 AM

3. Damn it all - - The RICH need their tax cuts!

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Response to xchrom (Original post)

Sun Oct 14, 2012, 11:52 AM

4. This is important

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