tag:blogger.com,1999:blog-9208928.post111764461232419961..comments2024-03-28T14:03:55.912-04:00Comments on Start Making Sense: Update on Graetz tax reform planDaniel Shavirohttp://www.blogger.com/profile/14710628584922961682noreply@blogger.comBlogger94125tag:blogger.com,1999:blog-9208928.post-49173074914207066662022-03-07T18:42:55.552-05:002022-03-07T18:42:55.552-05:00I am Rachael, I am posting this voluntarily becau...I am Rachael, I am posting this voluntarily because I was glad to get my loan after I was deceived. 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Despite all the calls to simplify the tax code, we have such a complicated tax code because we demand it to be so. Every significant tax deduction has a ton of people supporting it.<br /><br />Remember Romney during the campaign? His plan was to lower marginal <a href="http://nmscpas.com/services/tax-planning-and-preparation" rel="nofollow">tax plannning</a> rates and pay for it by removing deductions. Obama and the Democrats had a lot of fun lampooning this, as he repeatedly refused to "show the math," aka actually list, point by point, the deductions he would eliminate.<br /><br />Mathematically you can certainly do this. You can design a system that is revenue neutral, that lowers tax rates by eliminating tax deductions. However, what Romney refused to admit was that while you can do this, you CAN'T do this without there being winners and losers. The winners are those who currently have few tax deductions; the losers are those who currently have many tax deductions.<br /><br />For instance, imagine you eliminated all tax deductions, and used that money to lower rates as far as possible without increasing the deficit. Who would win? A person who makes good money and has few deductions. Say, a single professional, making $80k/year that rents and has no children. Under the current system, they pay close to the marginal rate anyway. The bill is a huge boon for them.<br /><br />Who loses? Those with lots of deductions. Imagine a couple with the same income, raising six kids and with a large mortgage that costs 40% of their income. They're currently relying on the mortgage interest and childcare deductions to keep them afloat. They've designed their entire life and budget around these deductions, and if they're canceled, they will likely go bankrupt.<br /><br />THIS is why Romney refused to list the deductions he would cut to pay for his plan. If he listed a very exact, consistent plan, the opposition would be able to show exactly who would win and who would lose. Within 24 hours, Obama's team would have had a website up where you can type your income and deductions in and find if your taxes would go up or down under Romney's plan. Ads would be running day and night showing some family with a lot of kids saying, "Why does Romney want to raise our taxes?"<br /><br />The simple truth of plans like this, where you lower the rates by cutting deductions, is that some people will see their taxes go down, and some will see them go up. This is why representatives want to propose repealing deductions in secret.<br /><br />http://blog.yahoo.com/_7P6WWWD2K2AWOUXAEYGY7EMPIQ/articles/1273696<br /><br />Thanks!Anonymoushttps://www.blogger.com/profile/05327439143392269071noreply@blogger.comtag:blogger.com,1999:blog-9208928.post-1172618921602525162007-02-27T18:28:00.000-05:002007-02-27T18:28:00.000-05:00It is good to come across a site that discuss the ...It is good to come across a site that discuss the various issues surrounding <A HREF="http://www.jazardezign.com" REL="nofollow">marketing company</A>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9208928.post-1171933239166682982007-02-19T20:00:00.000-05:002007-02-19T20:00:00.000-05:00......Good blog - very interesting!! I liked it s....<BR/>.<BR/>.<BR/>.<BR/>.<BR/>.<BR/>Good blog - very interesting!! I liked it so much I'm going to share this hush hush advice with you. 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