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Wed Jan 9, 2013, 07:13 PM

 

As new fiscal crises near, Democrats seek more tax increases

But much of what Obama is talking about is raising tax revenue without actually raising tax rates. In Washington-speak, lawmakers will try to collect more tax money by closing tax loopholes, perhaps limiting popular tax deductions and to some degree changing the way citizens pay into the popular Medicare and Social Security programs.

Raising tax revenues without raising tax rates could take several forms.

One proposal popular with economists is treating some portion of employer-provided health insurance as taxable income on a filer’s tax return, an idea proposed by Hillary Clinton and accepted by many Democrats during the 2008 campaign. If a health plan is valued at more than $14,000, for example, the sum above that could be treated as taxable income.

Another idea would be to limit how much mortgage interest, state taxes or charitable giving can be deducted from taxes by high-income earners. The New Year’s deal started phasing out some of the tax exemptions claimed by high-income earners and limiting their tax deductions. This could gain in popularity because tax rates remain unchanged and middle-income Americans would not be affected.

A bipartisan presidential commission in 2010 favored scaling back mortgage-interest deductions, in part because they effectively subsidize the wealthy by offering them a bigger discount off a higher tax rate. The problem is that rolling this program back is fraught with risk in today’s impaired housing market.

“How do you phase it in? The more you cut back, the more effect it has on the housing market,” noted Roberton Williams, a senior fellow at the Tax Policy Center, jointly run by the center-left Brookings Institution and the centrist Urban Institute. “How do you deal with that transition period?”

Read more here: http://www.mcclatchydc.com/2013/01/09/179447/as-new-fiscal-crises-near-democrats.html#storylink=cpy

8 replies, 737 views

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Reply As new fiscal crises near, Democrats seek more tax increases (Original post)
dkf Jan 2013 OP
leftstreet Jan 2013 #1
devilgrrl Jan 2013 #2
leftstreet Jan 2013 #3
dkf Jan 2013 #5
leftstreet Jan 2013 #7
dkf Jan 2013 #8
Kingofalldems Jan 2013 #4
dkf Jan 2013 #6

Response to dkf (Original post)

Wed Jan 9, 2013, 07:15 PM

1. You used to be more subtle

Are you flaming out?

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Response to devilgrrl (Reply #2)

Wed Jan 9, 2013, 07:22 PM

3. LOL

indeed

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Response to leftstreet (Reply #1)

Wed Jan 9, 2013, 07:36 PM

5. Are you not interested in the budget talks?

 

We still have sequestration and the debt ceiling too.

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Response to dkf (Reply #5)

Wed Jan 9, 2013, 07:40 PM

7. Not really. It's just rich people arguing how to fuck us over

Nothing on 'the table' about single payer healthcare, increased minimum wages, a jobs program

Meh

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Response to leftstreet (Reply #7)

Wed Jan 9, 2013, 07:46 PM

8. You have a point. I wonder if those kinds of discussions will ever appear on the horizon.

 

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Response to dkf (Original post)

Wed Jan 9, 2013, 07:23 PM

4. Obama won!

You don't seem too happy. Aww.

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Response to Kingofalldems (Reply #4)

Wed Jan 9, 2013, 07:37 PM

6. And he is looking to increase revenue as he should.

 

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