Tuesday, November 13, 2012

Democrats Like a Romney Idea on Income Tax

This link describes the feelings of some democrats on Capital Hill who approve of a piece of Romney's income tax plan: capping deductions.  By capping the amount of deductions at somewhere around 35k, excluding charitable givings, the government could increase its revenue even more than just through higher rates for earners over 250k.  Good idea? Does this seem like it will cause much of an uproar?


"But with the presidential campaign over, it is taking on new salience. The Democratic centrist group Third Way has made it the centerpiece of a package of tax changes that it says could raise nearly $1.3 trillion over 10 years without raising rates."

"The Third Way proposal would limit tax deductions to $35,000 but would exclude charitable giving. Universities, foundations and other philanthropies have been the biggest impediment to passing Mr. Obama’s more modest 28 percent limit, which did not exclude the charitable tax deduction."

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3 comments:

  1. Brandon CastoNovember 13, 2012 at 8:23 AM

    One part of Romney's plan that I was definitely for was his idea on capping deductions. I think that by doing this you create extra revenue by taking away some of the unnecessary loopholes that many people find during taxes. Not only does this plan create revenue, but it does not seems like that big of a hit to the general public. Most people it would not even effect and the people that it does impact would still have plenty of deduction opportunity. Overall, this seems like a very good plan for our economy as a whole.

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  2. Andrew INovember 13, 2012 at 7:25 PM

    "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."
    --This part bothered me quite a bit, having just done my policy prompt on the failings of Mitt's plan, overall. It wasn't just Obama's naming of his plan as 'sketchy'..it was various non-partisan research centers calling it 'nearly impossible', 'unprecedented', and 'politically unrealistic'. This element of Romney's overall plan is looked at in a positive light--but that's not to say in the least that democrats are changing their stances on his overall plan. In the same context that many Republicans disagree with Obama's overall healthcare plan, its not to say that they disagree with--all of it. That's all this is an example of here as well. Democrats like an aspect of Romney's plan...that in no way also signifies that they've changed their stances on his tax policy initiative overall

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  3. UtsavNovember 16, 2012 at 6:07 PM

    The third way proposal is an extremely good plan to increase the revenue. While I was not entirely convinced with all the aspects of Romney's tax plan, some of his plan were great to increase the revenue. i agree with Brandon that the people who will be affected by such tax plan won't be hit too hard.

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