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View Diary: Republicans float limiting deductions in exchange for permanent extension of Bush tax cuts (78 comments)

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  •  It's hard to form an informed opinion on the (1+ / 0-)
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    davboyce

    proposal if it is good or bad without some numbers on what type of limit on deductions is proposed, and then run some numbers using IRS data comparing the proposal against current law.

    If one is ok with uninformed opinion, one can just say if Republicans proposed it it must be bad.

    I have a bias for informed opinion.

    The most important way to protect the environment is not to have more than one child.

    by nextstep on Mon Nov 07, 2011 at 03:54:10 PM PST

    [ Parent ]

    •  Sure. I advocate for increasing deductions (0+ / 0-)

      and exemptions, after moving to a 70% top rate with at least 15 brackets. Cap gains to 28% Corp top rate to min 42%, but maintaining current effective rates.

      What we used to do was to give back over half to reward good behavior. Deductions and exemptions were used to incentivize the flow of capital to incountry, to create US jobs.

      The 86 TRA removed the vast majority of deductions and exemptions, combined with cap gains @15% and the corp top rate being lowered to 25%, we created an environment that incentivized the flow of capital to overseas and to speculation.

      The result is the jobless recovery and large speculative bubbles. Because we removed a tax policy that moved 4-5% of GDP to job creation, while we cut infrastructure spending from 5% to 2% of GDP.

      So yeah, the GOP plan does zero to create jobs or solve any other problems we have, so its bad.

      FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

      by Roger Fox on Thu Nov 10, 2011 at 10:21:37 AM PST

      [ Parent ]

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