Posts Tagged ‘000 deduction bucket’

Romney’s $17,000 tax fix … I like it!

October 3, 2012

According to ABC News, Mitt floated an elegantly simple idea for cleaning up the tax code:

Cut every bracket’s marginal rates and  limit deductions to $17,000.

Specifically, Romney said:

“As an option you could say everybody’s going to get up to a $17,000 deduction; and you could use your charitable deduction, your home mortgage deduction,  your healthcare deduction… to fill that bucket, if you will, that $17,000 bucket that way

And higher income people might have a lower number.”

For the record, the idea would hurt me personally since I carry a couple of jumbo mortgages and make charitable donations.

Still, I think the idea is GREAT.

It simplifies the tax code … and levels the field, say, between renters and home owners.

I’ll continue to give to charities … so will Mitt … so will most current donors.

If charities don’t have powerful enough value propositions to raise money, that’s their problem.

I really like that the change would screw folks in high tax Blue states – e.g. NY, CA – since the deduction for state & local taxes would fall under the cap.

There’s less of an impact on folks in well run states (like VA) … that’ll give tax & spend states more motivation to clean up their own acts.

Sure, there are plenty of details to be worked out (e.g. how to handle child credits) … but, I think this simple plan might be a game-changer.

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