Dec16
The State And Local Income Tax Deduction
on December 16, 2012 at 11:15 amTime to eliminate this subsidy to the rich.
Time to eliminate this subsidy to the rich.
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Hear, hear. Also the tax-exempt status of municipal bonds, the deductions for health insurance and health care expenses, the home mortgage deduction, the charitable deduction, and the deduction for retirement savings (IRAs, 401Ks, etc.). They all distort the market, and disproportionately favor the wealthy. But because they are so valuable to the well-off, they are well defended on Capitol Hill.
The reason why municipal bonds are exempt from income tax is that it lowers the interest rate cities have to pay. Eliminating that exemption would make their borrowing significantly more expensive, which may not be a completely bad thing. It’ll force cities to only borrow for necessities.
So, the GOP types, even in the NRO, have caved in so far that the only discussion is on whom to steal from?
No federal deductions whatsoever seems like a reasonable place to start.
How about a law that each member of congress must read, out loud, the entirety of the federal tax code each time they wish to receive a paycheck? It might not make it fair, but at least it would be short.