November 14, 2012
OUR REPUBLICAN PRESIDENT:
Democrats Like a Romney Idea on Income Tax (JONATHAN WEISMAN, November 12, 2012, NY Times)
With both parties positioning for difficult negotiations to avert a fiscal crisis as Congress returns for its lame-duck session, Democrats are latching on to an idea floated by Mitt Romney to raise taxes on the rich through a hard cap on income tax deductions.The proposal by Mr. Romney, the Republican presidential nominee, was envisioned to help pay for an across-the-board income tax cut, a move ridiculed by President Obama as window dressing to a "sketchy deal." But many Democrats now see it as an important element of a potential deficit reduction agreement -- and one they can claim to be bipartisan.The cap -- never fully detailed by Mr. Romney -- is similar to a longstanding proposal by Mr. Obama to limit income tax deductions to 28 percent, even for affluent households that pay a 35 percent rate. But a firm cap of around $35,000 would hit the affluent even harder than Mr. Obama's proposal, which has previously gotten nowhere in Congress.
That's a start, but get rid of all deductions and simplify the code.Posted by Orrin Judd at November 14, 2012 5:23 AM