Bush Plans Tax Code Overhaul

[LiviaOlivia]

Bush Plans Tax Code Overhaul

By Jonathan Weisman and Jeffrey H. Birnbaum
Washington Post Staff Writers
Thursday, November 18, 2004

The Bush administration is eyeing an overhaul of the tax code that would drastically cut, if not eliminate, taxes on savings and investment, but it is unlikely to try to replace the existing tax code with a single flat income tax rate or a national sales tax, according to several sources familiar with ongoing tax deliberations.

<snip>

The administration will also push hard for large savings accounts that could shelter thousands of dollars of deposits each year from taxation on investment gains, according to White House economic advisers who have been involved with the planning. And any tax reform, according to Treasury Department officials, would likely eliminate the alternative minimum tax, a parallel income tax designed to ensure that the rich pay income taxes but one that increasingly ensnares the middle class.

To pay for those large tax cuts, the administration is looking at eliminating both the deduction for state and local taxes, and the business tax deduction for employer-sponsored health insurance. That would raise nearly $926 billion over five years, according to White House and congressional documents.

Eliminating the state and local tax deduction, for example, would allow the administration to scuttle the alternative minimum tax and raise an extra $400 billion over 10 years, said Leonard E. Burman, a tax policy expert at the Urban Institute. That would be twice what the White House needs to fund the planned tax-free savings accounts, expanded retirement savings accounts and tax-free health savings accounts.


<snip>

http://www.washingtonpost.com/wp-dyn/articles/A58554-2004Nov17.html

[Sandpiper]

1. More Robbing Peter to pay Paul

Peter being ordinary Americans, Paul being rich Americans.

[mindem]

2. We should all just pick a rich family

to send our money to. Or maybe a multinational corporation. That's the way it's going to end up anyway. Why pretend?

[htuttle]

3. Those rat fucking motherfuckers!

To pay for those large tax cuts, the administration is looking at eliminating both the deduction for state and local taxes, and the business tax deduction for employer-sponsored health insurance.

If they eliminate those deductions, it's REALLY going to hurt down here.

Those fuckface shitheads! Fuck them!


A pox on any congressperson who votes for this, Republican or Democrat. I don't CARE about 'strategy' on this. Just fucking vote against it.

[Jackpine Radical]

9. Nice. It's a Blue-State tax.

Blue states spend more on social programs & education, hence have higher state & local taxes. Eliminating these deductions will cause blue-staters to pay higher federal taxes.

[TwentyFive]

4. This is an OUTRAGE!!!

Makes working people and small businesses pay more....while people who are already wealthy (eliminate taxes on savings & investment) pay even less.

Nothing like having your money make more money, and paying no tax....while people who earn their money from wages get stiffed for more taxes.

The people who voted for * really do suck eggs!!!

[Sandpiper]

5. Once their employer drops their health coverage

Will they still be glad they voted for Bush?

[amber dog democrat]

16. Well don't forget Bush is moral

so somehow this is probably Clinton's fault.

[fob]

6. Isn't that a "TAX RAISE"?

Let's see eliminate AMT which hits the wealthy because it also "increasingly ensnares the middle class" and to pay for it take away deductions which is a tax raise on same said MIDDLE CLASS!!

Why not just peg the AMT to a higher income/wealth limit?


And how many businesses will drop health insurance coverage when this hits?

[amber dog democrat]

7. We can't deduct for state and local taxes anyway in Texas

so I feel sorry for the rest of the 47 states that can.

[papau]

11. I thought the special Texas deduction of sales tax bill passed

Indeed I am fairly certain that it passed.

[amber dog democrat]

14. It DID but did I save any reciepts ?

beyond county and local taxes on my house... we did not buy any big ticket items.
I wonder if car repair counts?
Good for you - if this is a benefit you can use. Next year I will save em.

[eleny]

8. the middle class gets it in the neck

[BootinUp]

10. I almost hope it happens that way.

Let these stupid mf'ers from the middle class that voted for him get a rude awakening.

[idiosyncratic]

12. What about deductions for mortgages and charitable donations?

If there is no income tax anymore, how will people be able to deduct their mortgage interest from their taxes?

How will people be able to deduct their donations to charity?

Who will still donate to charities if they cannot deduct that from their taxes.

Who will be able to afford a home if they cannot deduct the interest?


And how will a person on a fixed income, who doesn't pay any taxes now, be able to pay the National sales tax on the necessities they have to buy?


How, how, how?

:cry:

[amber dog democrat]

15. Unless I missed something , I dont think they are eliminating Income Taxes

Also I think with itemization, you can still deduct morgtage interest and charities.
Remember the Chimp squeaked loud and long about home ownership... but
since he does not act in good faith... who know what will happen.

[PROGRESSIVE1]

13. Maybe then the people will wake up and vote for Democrats!

[tsuki]

17. I am officially PISSED OFF!

As an employer, I pay about 40K to insure my five employees in Florida thanks to Republican "Join Club Bev" Kilmer who voted the largest increase to the insurance companies when she announced her candidacy for Congress. We defeated her, and sent Allen Boyd back.

Now is he also proposing to eliminate the personal tax deduction for employees who get their premiums deducted from their pay before they are taxed? And eliminating state and local taxes? So much for the much touted, have a beer with me, middle class tax cut.

Shrub has lost what was left of his dope-fried brain.

I fought to keep "Join Club Bev" out of Congress on this issue, and I will fight Shrub.

Everyone, letters to Congress.