adrenalynn":3i3c169s said:I answered the question directly when you asked it.
You gave me an either or. I responded that it was just a question of how much theft was involved.
The _fact_ is that they will always endeavor to seal up deductions and then raise rates. You don't think they're going to permit the government to get any smaller, do you? Ever voluntarily decrease the nannystate?
Actually, it wasn't meant as an either/or question. Those were two questions, not alternatives --- the proposal offers both of these trades, not a choice between the two. Let me rephrase the two questions without the "or."
1. Would you take a much lower simplified tax rate, in exchange for fewer deductions?
2. Would you take a higher total tax bill, in exchange for cuts in spending?
My answer is that I would take the trade.
1. I would take a much lower simplified tax rate, in exchange for fewer deductions, because I think deductions are just back door spending disguised as tax cuts. I think the deductions have gotten out of hand. Take them out of the tax code, and if we really want these subsidies, pass them again as spending items. Now, I LOVE receiving the mortgage interest deduction, and I have benefitted from it personally. But why should the government (or other tax payers) subisidze my mortgage? Instead of paying taxes at the 33% rate and getting a deduction for my mortgage, I think it makes more sense for the deduction to go away and for me and everyone else in the tier to pay 26%. If we start at a new lower tax rate, and no deductions, then maybe we can decide if we really do want these programs and pay for them honestly. So if we decide we do want to subsidize mortgages, then instead of giving a tax deductoion and raising rates, we could pass s spending bill that authorizes the government to mail everyone a check for a portion of their mortgage, and it'll mean the top tax rate will increase from 26% to 33% to pay for it. That would be more honest, and it would disourage the back door spending in the form of tax expenditures.
2. I would take a higher total tax bill, in exchange for cuts in spending, because I think the only way the deficit will ever be "fixed" is a compromise solution that includes both tax increases and spending cuts.