Romney’s campaign musings about how he would cut income tax rates by 20 percent (when half of Americans don’t even pay income taxes) has now floated the ultimate loser for all tax paying Americans. This is a $17,000 limit per person for all deductions including mortgage interest, charitable, and state taxes. The concept was first floated by Obama to limit charitable deductions to a maximum rate of 28 percent for high income taxpayers, even though marginal tax rates are at 35 percent and may go to 39 percent at the end of this year. Once the principle is established to curtail deductions, future congresses can then cut them more and more.
This was the left’s attempt to get the camel’s nose under the tent, that is to start curtailing deductions, especially for large charitable and educational foundations. They have quickly jumped to note “bi-partisan” support for their agenda, “Romney is now admitting that middle-class tax increases on housing, health care and charitable deductions are on the table,” said Adam Fetcher, a spokesman for Obama.
Source: The American Conservative. Read full article. (link)