Romney's $25,000 "basket of deductions": state and property taxes will no longer be deductible!

[mainer]

I admit it. I have a very comfortable income from wages and regular earnings (not capital gains). I just did my own calculations of how I come out under Obama vs. Romney and I'm shocked. I've been an Obama supporter despite the fact I assumed I'd pay higher taxes under Obama. I thought that paying higher taxes was my duty as a citizen.

So imagine my surprise to realize that I'd actually be paying MORE taxes under Romney if I was limited to a $25,000 basket of deductions because I'd be unable to deduct my state and property taxes, as I do now.

http://online.wsj.com/article/SB10000872396390443749204578050362874705752.html"The current tax code allows filers to deduct state income tax, real-estate tax, and some sales taxes from federal tax. This rewards states for raising taxes. Under the Romney cap, many upper-middle-class filers wouldn't be able to write off all their state taxes. This would create political pressure to cut state taxes."

Right now, I pay a TON of state (Maine is 8%) and property taxes. They add up to well over the $25,000 basket. Overall, I'd end up far worse under the Romney tax plan.

Many upper income Americans assume that Romney would lower their taxes. They should think again.

The only taxpayers who'd make out like bandits under Romney are those whose income is primarily from capital gains. It's not high wage-earners. It's not small businesspeople. It's those who aren't actually working, but deriving their incomes from passive investments. The idle wealthy. And they are NOT the ones who will be reinvesting that income in business or hiring workers.

It's small business people and wage earners who are doing the active hiring. And their income is through regular income and wages. They're the ones who should be getting the tax breaks, because they're the ones reinvesting in the economy through business investments and hiring.

Not those who are sucking from the capital gains teat.

[beac]

1. Did you notice that the first "bucket" was $17K then, when someone must have told him that's

a pretty small bucket for a lot of middle class folks, he upped it to $25K. I've heard him float $50K too.

Point is, Mittens has NO idea what tax deductions mean to regular working people. No matter WHAT he has ever paid in any kind of taxes, Mitt has never had a SINGLE day's worry about money in his entire life. THAT is abundantly clear.

[flamingdem]

8. We need to call it Mitt's "BARF BUCKET"

I react to words and when he says the word bucket, I feel a heaving sensation

[reformist2]

2. All his "tax reform" ideas are complete garbage. I refuse to consider any of them.

[Angry Dragon]

3. If Willard had a serious tax plan he would be able to supply

charts showing how the tax plan would work
without the details there is no serious plan

[jmowreader]

14. That would end his bid right there

He has a serious plan: slash the tax rates, then eliminate every deduction except charitable contributions and child-related expenses.(He has to keep those in order to keep the Mormon's First Commandment: thou shalt not shaft another Mormon.)

He doesn't want the powerful National Association of Realtors to endorse Obama (and bring the homebuilders, lumberyards and building materials suppliers along with them) so he won't tell you mortgage interest will be nondeductible.

[upi402]

4. You are far more industrious than I am

I haven't bothered to even listen to Romney's BS. I figure it will change in 3 weeks anyway.

[Beartracks]

5. Romney: Deductions in baskets, women in binders.

===============

[Faryn Balyncd]

6. You've nailed it...Romney's policies are an assault on the middle class & small business for the

...benefit of the One Percent.

The Republican base is so blinded by hatred they can't see they are being screwed.

[silverweb]

7. Bookmarked.

[font color="navy" face="Verdana"]There are people I need to send this to.

[tk2kewl]

9. i guess he did just pick a number for a whole lotta people

pretty easy for most people to add up how many dollars of deductions that is and if he leaves the tax rate the same what would that coast me.

[tk2kewl]

10. nicely stated and reminds me of this

Just without the chorus.

On edit: I had just been posting this in another thread:

i guess he did just pick a number for a whole lotta people.

pretty easy for most people to add up how many dollars of deductions that is and if he leaves the tax rate the same what would that coast me.

[MiniMe]

11. Did you figure in the 20% cut of income tax rates for all filers?

I'm just curious. I suspect you are right.

[bluestate10]

12. "Many upper income Americans assume that Romney would lower their taxes. They should think again"

The above is not completely right. It should be that many upper middle class americans. The people that are going to be hurt under Romney's plan are the people in the $150,000-$600,000 total income bracket that have high state taxes, mortgage deductions, charitable deductions and adjustments to short-term investment income deductions. To people in that group, the $25,000 allotment will vaporize fast. People in the $700,000-$1,000,000 brackets will feel some pain from being bracketed by Romney, but their earnings will soften the blow. People earning above $1,000,000 will hardly notice the bracketing, those are the people that will get big breaks from Romney's plan, because as you noted, the sources of their income come from capital gains and other investment income that Romney has cleverly chosen to exempt those earnings from his plan. Under Romney's plan, the rich will simply shift their income stream to sources that Romney will not tax, simply because those people can afford to pay specialists who re-direct their money.

Romney is cleverly trying to get people that have incomes below $100,000 excited about his plan and get their votes. What those people have to realize is that they likely don't have enough in deductions to meet the $25,000 allotment. What is likely to happen to them is they will face periodic explosions in their state, and local taxes that will force them to take out loans to meet. The interests paid on those loans over a one year period is not deductible now and won't be under Romney's plan, so that money will be lost.

[spanone]

13. when he came up with the 25,000 he said 'pick a number' he hasn't revealed a fucking thing