Wetterling Proposes Tax Cuts (Sorta)
Patty Wetterling has proposed a new tax policy, though I can't accurately call it the new policy tax cuts. Here's how Ms. Wetterling outlines her proposal:
Then there's the matter of credibility here. How likely is it that the trial attorney lobby, which Democrats are beholden to, would let Congress close the corporate deduction for attorney's fees? Less than slim? Little more than none? Or less than none? I'll choose C, less than none.
What's the likelihood that they'd get the corporate jet executive 'loophole' closed? I'd suspect that it's less than zero after the first lobbyist heard about it.
Here's the Bachmann campaign's response:
Posted Monday, September 4, 2006 9:55 AM
August 2006 Posts
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In Congress, I will make the needs of middle-class families a priority so that they can achieve this dream. When it comes to making changes to our tax system, I will always follow three basic principles:Sounds good thus far, right? We're just getting to the part where it stops being a true tax cut.
1. We need to make the tax system fair so that no one is overly burdened;
2. We need to make the tax code simple so that families are able to file basic household taxes on their own;
3. We need to be responsible to future generations and stop burdening our children and grandchildren with a growing national debt.
The plan that I support follows the principles mentioned above and will help middle-class folks in buying a home, raising children, paying for college and saving for retirement. With this plan, we can lift the burden off of the middle class, provide them access to greater opportunities and give them hope for the future.
The Plan
1. The Simplified Family Credit
A credit for working families with children that provides more benefits to families while cutting 200 pages of the tax code into a 12 question form. It will replace three existing credits: the Earned Income Tax Credit, the Child Tax Credit and the Dependent Care Credit.
2. Universal Mortgage Deduction
A home mortgage deduction for all homeowners, not just those who itemize their taxes. This approach is less complicated, makes the benefit more accessible and will encourage more home ownership.
3. The College Credit (Refundable Credit for Higher Education Expenses)
A college tax credit of $3,000 for all college students. This credit will help increase access to higher education and economic success. It combines several current tax incentives: the Lifelong Learning Credit, the HOPE Scholarship, the Deduction for Higher Education Expenses and the exclusions of employer-provided education benefits and qualified tuition reductions.
4. Universal Pension
A single, portable retirement account to replace the "alphabet soup" of 16 existing IRA-type accounts.
The Cost
Cost of plan over 10 years
1. The Simplified Family Credit - $250 billion over 10 years
2. Universal Mortgage Deduction - $56 billion over 10 years
3. The College Credit (Refundable Credit for Higher Education Expenses) - $83 billion over 10 years (over what the current credits cost ~ which is $92 billion)
4. Universal Pension ~ negligible. Savings are gained from consolidation
Total: $389 billion over 10 years
The Possible OffsetsBy Ms. Wetterling's calculations, the cuts equal $389 billion. Using Ms. Wetterling's numbers, my calculations tell me that the offsets equal $287.27 billion.
As part of this plan, I propose several possible offsets so that we can provide relief for middle-class families without adding to the deficit.
Economists estimate that over $300 billion is lost each year to non-compliance (tax avoidance or underpayment). We can improve compliance in part by simplifying the tax code. My plan makes simplification an integral part of reform.
I will also propose closing these unfair loopholes in our tax law:
* Special rules for the oil and gas industries cost us $19 billion
* There is a corporate deduction for attorney's fees that if closed could generate $327 million/10 years
* Imposing penalties for abuse of tax shelters gets us $20 billion/10 years
* Corporate jet executive loophole - $6 billion/10 years
* Bermuda offshore incorporation loophole - $5 billion
Then there's the matter of credibility here. How likely is it that the trial attorney lobby, which Democrats are beholden to, would let Congress close the corporate deduction for attorney's fees? Less than slim? Little more than none? Or less than none? I'll choose C, less than none.
What's the likelihood that they'd get the corporate jet executive 'loophole' closed? I'd suspect that it's less than zero after the first lobbyist heard about it.
Here's the Bachmann campaign's response:
Today, Patty Wetterling flip-flopped on her stance on tax cuts. From her own words, we know that Patty has "strongly agreed" that a portion of the federal tax cuts enacted since 2001 should be repealed (Star Tribune 10/28/04) and it was reported in the Star Tribune that she "opposes making the Bush tax cuts permanent" (Star Tribune 2/19/06). The tax cuts Wetterling has said she would like to repeal include the elimination of the marriage penalty and the elimination of the death tax.It sounds to me like Ms. Wetterling isn't proposing tax cuts; she's proposing cuts in her credibility. That isn't smart strategy. I'd doubt that it'll help her come November.
Posted Monday, September 4, 2006 9:55 AM
August 2006 Posts
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