Yeah, congress should pass obama's mislabled jobs act without debate or thought. You know how well that worked for health care reform. The big question of how he will pay for it? Yes, the old refrain of taxing the "rich".
http://money.cnn.com/2011/09/12/news/economy/stimulus_package/
Not only does he want tax cuts to end, increasing the two upper brackets 3 and 4.6% respectively, he would limit itemized deductions for this same group of people. In essence, about 10% of deductions claimed on schedule A, high medical expenses, state and local taxes, home mortgage interest, and charitable contributions, would reduce the tax bill by $28 for every $100 instead of the $39 allowed now. Note that limitations on deductions have been in place for many years, with 2010 being the odd year with no limitations.
Not only does this artificially inflate the tax brackets even higher, it would discourage charitable giving. However, the even bigger issue is that it further demonizes those defined as obama's rich.
If you want to limit deductions, do it fairly across all income levels. Medical deductions are only deductible if they are more than 7.5% of AGI, so already limited the more you make. Taxes are already limited since most can't be claimed for this tax bracket due to the AMT. So what is targeted are really mortgages and charitable contributions. Instead of an arbitrary income level that cannot claim mortgage interest, why not limit based on consumption. Take the average priced US home, around $273,000 and allow deduction of this interest rate but not interest on debt beyond this level. That way you do not penalize someone for either living modestly despite earning a good living or for being successful but not living in debt. I don't think charitable contributions should be limited in this economy.
This debate is probably meaningless though since this jobs act, you know, the one that required delay to discuss, the one that meant he had to go on vacation to ponder, the one launched with more of a goal for saving obama's job than those of the public... is nearly identical to what he has proposed in his previous 3 budget proposals and it has been defeated over and over again. This is the crux of his wanting them to pass it without delay, hoping no one will notice it is nothing but the same old, same old, and stuff he couldn't pass with full dem control.
http://money.cnn.com/2011/09/12/news/economy/stimulus_package/
Not only does he want tax cuts to end, increasing the two upper brackets 3 and 4.6% respectively, he would limit itemized deductions for this same group of people. In essence, about 10% of deductions claimed on schedule A, high medical expenses, state and local taxes, home mortgage interest, and charitable contributions, would reduce the tax bill by $28 for every $100 instead of the $39 allowed now. Note that limitations on deductions have been in place for many years, with 2010 being the odd year with no limitations.
Not only does this artificially inflate the tax brackets even higher, it would discourage charitable giving. However, the even bigger issue is that it further demonizes those defined as obama's rich.
If you want to limit deductions, do it fairly across all income levels. Medical deductions are only deductible if they are more than 7.5% of AGI, so already limited the more you make. Taxes are already limited since most can't be claimed for this tax bracket due to the AMT. So what is targeted are really mortgages and charitable contributions. Instead of an arbitrary income level that cannot claim mortgage interest, why not limit based on consumption. Take the average priced US home, around $273,000 and allow deduction of this interest rate but not interest on debt beyond this level. That way you do not penalize someone for either living modestly despite earning a good living or for being successful but not living in debt. I don't think charitable contributions should be limited in this economy.
This debate is probably meaningless though since this jobs act, you know, the one that required delay to discuss, the one that meant he had to go on vacation to ponder, the one launched with more of a goal for saving obama's job than those of the public... is nearly identical to what he has proposed in his previous 3 budget proposals and it has been defeated over and over again. This is the crux of his wanting them to pass it without delay, hoping no one will notice it is nothing but the same old, same old, and stuff he couldn't pass with full dem control.