Monday, December 3, 2012
Obama Still Favors Raising Tax Rates Versus Limiting Tax Deductions
This article explains why Obama continues to pursue an increase in tax rates for those with incomes over $250,000. Most of the deductions that the GOP proposes to eliminate, in exchange for constant tax rates, will not get through Congress. The biggest hurdle would be the deduction for charitable contributions. There is also a lot of popular support for retaining the deduction for mortgage interest. There is no way to achieve the needed increase in tax revenues by eliminating deductions for those with high incomes. The middle class would also have to give up some deductions.