November 13th, 2012
01:39 PM ET
10 years ago
Curbing tax breaks: Does the math add up?
New York (CNNMoney) - Republicans have officially gotten on board with raising revenue for deficit reduction - by curbing tax breaks in conjunction with lowering tax rates.
The idea of curbing tax breaks isn't new. Tax policy experts have touted it for years and Democrats, including President Obama, have proposed it in one form or another. That's why it may offer a key to resolving the fiscal cliff.
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If the Democrats, [led by Mr. Obama] adopt a "curb deductions and lower tax rates" approach they will be applying Romney`s plan, Not only that, it will be yet another demonstration of poor business negotiation prowess by this Administration.
Democrats, you won.
Step 1; let the "temporary" lower Bush tax rates expire. This include Capital Gains tax rates. This forces revenue higher in a way that can not be undermined.
Step 2: With the GOP desperate to give the wealthy tax relief, then negotiate the elimination of corporate & wealthy individual loopholes. Using actual returns from 2009, 2010, 2011, calculate the actual amount that revenue would increase if these deductions went away.
Step 3; Over a gradual 3 year period, 2013, 2014, 2015, lower individual tax rates to re align [lower] the revenue. Political plus as the public will see rates being lowered under a Democratic Administration as 2016 approaches.
Step 4: Capital Gains rates are to be 5 points HIGHER than individual rates. [working for income – labor – should always recieve favorable treatment compared to passive income.]
This approach will cut the deficit, stabilize the economy and restore fairness for the middle class in the tax code. It will also give Democrats the upper hand in the negotiations – something many in the base think is necessary.
But half of us do not want to "move forward" toward a socialist country. That is why the congress republicans need to knuckle down and put the brakes on policies that will cause damage to our democratic republic. They should vote for the policies that will benefit the country, but thus far they have been few and far between.
just saying......ummm....as sniffit said, Obama did compromise. He even stuck in the closing loopholes part. Republicans balked. And I remember democrats working with Bush when it counted. 9/11 wasn't politicized until Gulliani started campaigning. No one questioned why Bush knew about it ahead of time and failed to protect 3000 US citizens until it became obvious that he did know. But that's not the compromise we are talking about. If nothing else, they compromised on going to war. Even if they changed their minds.
But a question bout your other post. If we can't tax rich people enough to cover the balance, why do you nutcase conservatives insist that raising taxes on poor people will result in anything better?
First of all ,the gop goofballs party needs to get rid of the crooked subversive gop lobbist rover nitwitquest and the first gop congressman that calls a news conference and publicly rips this pledge to shreds will be an American hero ,and the new head of the gop and it won't be Ryan ,he signed it . It's time to represent the people who voted for you not a crook lobbist like nitwitquest who didn't even vote for you ,he's done just like romney and rove ,its a new day !!!!!