November 13, 2012
NO HEAVY LIFTING REQUIRED:
'Congratulations, Partner': What Boehner Could Say in a Memo to President Obama (IRA STOLL, 11/12/12, NY Sun)
[W]e'll go even further than the ObamaCare tax. We'll offer up something that Mitt Romney was talking about in the presidential campaign, which was limiting the value of tax deductions for upper-income taxpayers. As Greg Mankiw, the chairman of the economics department at Harvard and a Romney campaign adviser, pointed out over the weekend, capping itemized deductions at $50,000 for each filer and keeping tax rates where they are today would raise $749 billion in tax revenue over ten years, with 79.9 percent of that coming from the top one percent of taxpayers.And if the ObamaCare Medicare tax, the increase in state income taxes, and a new limit on deductions aren't enough for you, we'll go even further in the direction of balancing the budget on the backs of the rich by doing something the Senate Republican leader, Mitch McConnell, talked about in his interview with the Wall Street Journal published this past weekend. The Journal said Mr. McConnell "wants means-testing for programs like Medicare." "Warren Buffett's always complaining about not paying enough in taxes," the Journal quoted Mr. McConnell as saying. "What really irritates me is I'm paying for his Medicare."So those are my "gives." Let's get to the "asks." All the other rates -- income, capital gains, dividends, payroll -- stay the same for another four years as they were in 2012. I would go down to two years on this if you want to make the 2014 midterm elections about this issue, but I think it's better for reduction of uncertainty to go at least four years out. The one exception is the corporate tax rate, where even you've said that for international competitiveness reasons we need to bring the rate down. My people are going to be annoyed by these increases in the Medicare tax and by the ceiling on deductions. But since the corporate taxes are really paid in the end by the shareholders, a cut in the corporate tax rate would allow me to say to Republican donors that on a net basis they're coming out unscathed, while you can go to the Democratic base and say "we finally forced those rich bastards to pay more taxes -- I mean 'asked people like me to pay a little more.'" It's a win-win.
Posted by Orrin Judd at November 13, 2012 5:18 AM