Skip to main content

Somehow I don't believe Mitt Romney really thought his $17,000 cap on itemized deductions through. And I doubt it came from whoever gives him tax/economic advice, either.

I suspect he read it somewhere and decided to trot it out as (as someone else called it) a bright shiny object to deflect from his mounting woes.

So how would Mitt's new idea affedt MITT'S taxes?

Hold your nose and jump over the thingie.....

I'm looking at Mitt's 2010 return and here are the important (for our purposes) numbers:

AGI                                    21,646,507
Itemized Deductions              4,519,140
Net Income                          17,127,367
Tax                                       3,009,766

So, if Mitt's idea is implented, what affect does it have? Not as much as it might, because almost all of his income is taxed at the capital gains rate of 15%, but here's what his numbers might look like:

AGI                                  21,646,507
Itemized Deductions                17,000
Net Income                       21,629,507
Tax                                    3,687,637

That's an additional $677,871 that Mitt will have to pay.

And for Mitt, the worst part is that because almost all of his income is taxed at 15% - which his own tax plan won't change - he gets almost NO benefit out of the 20% tax rate cut in his plan. So Mitt's taxes will go up almost $700,000.

Seriously? The guy who, for his entire adult life, has pursued tax dodges, deductions, exemptions, avoidance, foreign investments and every other possible way to minimize his taxes with religious fervor..... is going to ruin all that all by himself?

If you believe that, you should call Reverand Al Sharpton about that bridge he's got for sale.

Another reason this won't fly with conservatives, in my opinion, is that - at least at this level of income and deductions - it appears to be very progressive.

At middle-class income and deduction amounts, it still looks somewhat progressive, although what really stands out for me is that it will drastically change many familys' taxes, some for better and some for worse.

Consider a family with income of $80,000 and deductions of $40,000.... they're screwed by having to pay taxes on an additional $23,000 of income, which is more than they'll ever save with the 20% rate cut.

Other examples will show taxes going up and down, sometimes by a lot, even if the bottom line somehow shows that this is 'revenue neutral'.

But, finally, since Republicans are all about 'freeing up the job creators'.........

How is taking an extra $700,000 from a prime-grade 'job creator' like Mitt Romney going to stimulate the economy, at least from the Republican viewpoint?

Cheers.

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  Tip Jar (6+ / 0-)
    Recommended by:
    Moravan, lighttheway, Lujane, Hey338Too, Davui, kurt

    Against stupidity the gods themselves contend in vain. Friedrich Schiller

    by databob on Tue Oct 02, 2012 at 08:11:47 PM PDT

  •  He ain't doin' nuthin'... (2+ / 0-)
    Recommended by:
    kurt, OooSillyMe

    ...`cause he ain't gonna win.

    Float like a manhole cover, sting like a sash weight! Clean Coal Is A Clinker!

    by JeffW on Tue Oct 02, 2012 at 08:16:53 PM PDT

  •  It will kill charitable donations, home ownership. (5+ / 0-)
    Recommended by:
    JeffW, Lujane, Hey338Too, kurt, OooSillyMe

    And the big dogs won't let this out of the barn.

    Nice try Mittens. FAIL

    "Mitt Romney seems like the kind of man who immediately rushes off to wash his hands after sex. Really. Don't you think so?" My mother in law!

    by lexalou on Tue Oct 02, 2012 at 08:20:37 PM PDT

    •  They'd Let Him Into the Office, Then Send (3+ / 0-)
      Recommended by:
      Lujane, lexalou, OooSillyMe

      Some Guys to chat with him as they did with Dubyah when Dub attempted to nominate a Supreme Court justice of his own choice.

      We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

      by Gooserock on Tue Oct 02, 2012 at 08:29:08 PM PDT

      [ Parent ]

      •  Harriet Meyers? (0+ / 0-)

        Hell, I would have had a chat with him about that too. Oh, my ribs, remembering some of the choices he made.

        I so want to know who these "chat" guys are, because it seems every president gets the chat. I suspect who Mitt's would be, any thoughts on PBO's?

        "Mitt Romney seems like the kind of man who immediately rushes off to wash his hands after sex. Really. Don't you think so?" My mother in law!

        by lexalou on Tue Oct 02, 2012 at 09:18:56 PM PDT

        [ Parent ]

  •  You say that like his money lives in the (1+ / 0-)
    Recommended by:
    Lujane

    United States.

    And are you looking at Schedule A -- or All his deductions in all those very specialized "business" deductions that he has, even though he's supposedly "unemployed".

    Oh shut up and tax the rich.

    by stuntfrau on Tue Oct 02, 2012 at 08:27:14 PM PDT

  •  Can I keep my dancing unicorn (1+ / 0-)
    Recommended by:
    Lujane

    deduction?  Just say'en.

    Expose the lies. Fight for the truth. Push progressive politics. Save our planet. Health care is a right, not a privilege.

    by lighttheway on Tue Oct 02, 2012 at 09:00:46 PM PDT

  •  Floating that idea the day before the debate... (1+ / 0-)
    Recommended by:
    slinkerwink

    ... was shear stupidity on Mitt's part.  I am sure that the President is ready with his zingers should Mitt float such a stupid idea during the debate.

    I haven't been here long enough to be considered a Kossack, does that mean that I'm just a sack?

    by Hey338Too on Tue Oct 02, 2012 at 10:08:51 PM PDT

  •  He see's himself as a citizen of the world (0+ / 0-)

    he'll just offshore all his blood money.  He has no allegiance to our country.  His manipulation of his taxes and offshore banking is evidence enough.

  •  After the election, had he won, (0+ / 0-)

    he would have become a convert to Ryan's no tax on unearned income plan so he would not need the $17,000 deduction since he would have no taxable income.

    You can't scare me, I'm sticking to the Union - Woody Guthrie

    by sewaneepat on Wed Oct 03, 2012 at 03:30:53 AM PDT

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site