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View Diary: Stephen Colbert destroys Romney's tax plan with one simple question (235 comments)

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  •  Here is the link to my graph (3+ / 0-)
    Recommended by:
    JVolvo, vahana, sethtriggs

    http://s1182.photobucket.com/...

    It is taken directly from IRS data, and simply plots the average value of the mortgage deduction by AGI for each of their income bins (the IRS did the bins and the deduction calculations, I simply calculated the ratio).

    This is average for all people within the bin, so people without mortgages and claiming no deduction are averaged-in with people claiming deductions.

    I have no idea how Ezra Klein made his chart or where he got it from.  But the article he links to gives a mixed-message, based on how you define 'middle class'.  Basically, it pits the 80-90 percentiles against those below them.  Since you can't claim more than 100% of taxes owed, the value is minimized for people who have other means to deduct 100% of taxes owed.

    But, there is no denying a swap or mortgage deduction elimination for income tax rate reduction will be a windfall for the top 1%.

    and their contempt for the Latin schools was applauded by Theodoric himself, who gratified their prejudices, or his own, by declaring that the child who had trembled at a rod would never dare to look upon a sword.

    by ban48 on Mon Oct 15, 2012 at 07:22:07 AM PDT

    [ Parent ]

    •  I think one of the problems with this is (1+ / 0-)
      Recommended by:
      sethtriggs

      that it looks at % of gross income. That will appear to have a small effect to someone who is wealthy.
      You can look at the source info from the article.
      http://www.tnr.com/...

      everything I have read convinces me the police does need to be changed significantly
      http://economix.blogs.nytimes.com/...

      •  Again, there is a reason that effective tax rates (3+ / 0-)
        Recommended by:
        JVolvo, vahana, sethtriggs

        go up until you hit around $2M income, then they fall:  the republicans systematically play the middle-uppers against the lower classes for the benefit of the top 1%.  A mortgage deduction elimination in exchange for a rate reduction is a huge windfall for the top 1%.

        And (referencing the sacred-cows link problem #4), yes a person with 10x the mortgage receives 10x the deduction, but that makes it flat, not regressive.  Someone with 100x the mortgage does not receive 100x the deduction, that makes it progressive.

        You are going to increase taxes on millions of people (pretty much the entire 'professional class - doctors, lawyers, etc.') while handing a windfall to the romney-class and doing nothing for the lower classes (that do not benefit from a mortgage deduction anyway).

        If you really want to close a loophole, go after dividends and capital-gains, both of which are double-binned as corporate profits (for tax purposes) and personal income (as-in, they are now in my personal pocket).

        and their contempt for the Latin schools was applauded by Theodoric himself, who gratified their prejudices, or his own, by declaring that the child who had trembled at a rod would never dare to look upon a sword.

        by ban48 on Mon Oct 15, 2012 at 09:23:45 AM PDT

        [ Parent ]

        •  PS - And he says not that this be 'revenue (2+ / 0-)
          Recommended by:
          vahana, sethtriggs

          neutral', but instead a net decrease of federal revenue.  So he is taking money from the professional class, giving it to the top 1%, and doing nothing for the lower class.  And, when this disaster gets pushed through, he'll blame democrats due to 'bipartisan support'

          You call that a plan...???  It is f%^&*&^ suicide.

          and their contempt for the Latin schools was applauded by Theodoric himself, who gratified their prejudices, or his own, by declaring that the child who had trembled at a rod would never dare to look upon a sword.

          by ban48 on Mon Oct 15, 2012 at 09:53:30 AM PDT

          [ Parent ]

      •  PS - who is to say this is the only deduction (3+ / 0-)
        Recommended by:
        JVolvo, vahana, sethtriggs

        he will go after?  Take away a few more deductions and the lower classes will feel the weight.

        and their contempt for the Latin schools was applauded by Theodoric himself, who gratified their prejudices, or his own, by declaring that the child who had trembled at a rod would never dare to look upon a sword.

        by ban48 on Mon Oct 15, 2012 at 09:30:03 AM PDT

        [ Parent ]

        •  sure. my comment was simply about the evident (0+ / 0-)

          value of reforming this particular deduction in a way that supports Progressive values - not that Romney should be the one to do it

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