Sat Sep 15, 2012, 05:27 PM
TomCADem (6,999 posts)
Romney Tax Cuts Work Only When Mortgage Break Mostly Reduced
Mitt Romney says he can lower income-tax rates by 20 percent without costing the U.S. government revenue and without making the middle class carry a bigger share of the tax load.
He’s right -- assuming that Congress eliminates the most widely used deductions by taxpayers earning more than $100,000 a year, says Harvey Rosen, an economics professor at Princeton University whose study Romney cites as evidence that his plan is viable.
The Republican presidential candidate has refused to say which tax breaks he would eliminate. Rosen’s illustration abolishes those for home mortgage interest payments, employer- provided health insurance, state and local taxes, charitable donations and the unrealized increase in the value of life- insurance policies for households with six-figure incomes.
“Even if you could maybe make it work in an abstract world, you can’t assume that all of these deductions will be eliminated, especially by a candidate who so far hasn’t identified one he’d do away with,” says Alan Viard, a former Treasury Department tax expert in President George W. Bush’s administration.
Read more: http://www.bloomberg.com/news/2012-09-14/romney-tax-cuts-work-only-when-mortgage-deduction-mostly-reduced.html
Even Republican analysis can't make Romney's proposed economic plan work without raising taxes on folks making less than $250,000 a year. The bottom line once again is that Romney is lying and stonewalling regarding who is going to get slammed by his plans.
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Romney Tax Cuts Work Only When Mortgage Break Mostly Reduced (Original post)
Response to TomCADem (Original post)
Sat Sep 15, 2012, 06:24 PM
TexasBushwhacker (3,247 posts)
3. Maybe we would see fewer McMansions
The truly wealthy probably won't care about not being able to deduct mortgage interest, but it may encourage building more modest sized, moderately priced homes. I think that would actually be a good thing - less urban sprawl.