Capping Deductions for the Rich: Even Mitt Romney Thinks It’s a Good Idea

rmoneyscreenHB 2456 would phase out these deductions for households that bring in more than $250,000 per year. That’s the richest 2% of households in the state.

The plan raises $169 million, plus another $38 million by eliminating the personal exemption credit for the same income level.

Many Republican legislators and their allies in the corporate lobby are adamantly opposed to closing tax breaks for the rich. But this basic idea is so popular, and has such wide public support, that even Mitt Romney latched onto the idea last year. In fact, it was a cornerstone of his tax reform proposal.

See for yourself:

Of course, even under the proposal in HB 2456, the wealthiest households still pay a lower effective tax rate than low- and middle-income households. See the chart! But at least it’s a step in the right direction.

steverobinsonhb2456charts

One Response to “Capping Deductions for the Rich: Even Mitt Romney Thinks It’s a Good Idea”

  1. Richard Clingman

    Am I the only one who’s seen the wealth distribution inequality charts? And how beginning with Reagan, the gap gets wider and wider to the point of absurdity? You know why this has happened? Because OUR representatives have failed to fight for US. We the people. The data is in. Leaving wealth distribution up to the MARKET is a failure. Government has a role in managing the financial stability of society. Revenues and spending are the tools. When the rich insist on hoarding wealth, government taxes them and actually USES that money to create jobs preventing the kinds of deep problems we’re having today. Had government been responsibly managing revenues all along and not let itself be poisoned by the destructive “starve the beast” kool aid that so-called conservatives keep cramming down peoples throats, we would not be in the mess we are in. In pure capitalism, profits trump people. That philosophy has clearly failed for the vast majority. Go on. Google it: wealth distribution in the US. Is that what a vibrant, healthy economy should look like to you?

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