Tax deductions, loopholes taken in 2008

Discussion in 'Politics' started by healthmyths, Oct 8, 2012.

  1. healthmyths
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    healthmyths Gold Member Supporting Member

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    What are the largest tax expenditures? In 2008 expenditures (tax deductions allowed) these are the amounts and types of deductions that Romney MAY suggest be eliminated or reduced. If ALL the deductions were eliminated another $653 billion would be added to tax revenue...
    BUT this would mean middle class tax hikes because $86 billion was deducted for example in 2008.
    Since Romney said that would NOT happen at worst case Romney would means test, i.e. higher taxable income would have less deductions.
    So all Romney needs is to CAP deductions say by 10% and paid ONLY by the WEALTHY.
    Romney can keep pledge NO tax hikes... reduced government spending, increased revenue from decreasing deductions AND increasing GDP by 3% would generate additional income and therefore BALANCE THE BUDGET!!! eventually reducing the DEBT!!!

    Ranked by size the type of deduction and the amounts written off against taxes in 2008

    Amount of
    Deduction Type of deduction that government ALLOWS tax payer to subtract from taxes

    • [*]$131.0 billion Exclusion of employer medical insurance premiums and medical care
      [*]$117.7 Net exclusion of pension contributions and earnings
      [*]$ 88.5 Deductibility of mortgage interest on owner-occupied homes
      [*]$55.9 Accelerated depreciation of machinery and equipment
      [*]$49.1 Deductibility of non-business state and local taxes
      [*]$46.8 Deductibility of charitable contributions
      [*]$31.5 Deferral of income from controlled foreign corporations
      [*]$30.0 Capital gains exclusion on home sales
      [*]$29.1 Deductibility of State and local property tax on owner-occupied homes
      [*]$28.4 Child credit
      [*]$24.2 Capital gains (except agriculture,timber, and coal)
      [*]$21.5 Step-up basis of capital gains at death
    $653.7 billion

    So ONCE and for all folks IF the ENTIRE tax deductions were eliminated in 2008 there would have been $653.7 billion MORE in tax revenue.
     
  2. jwoodie
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    jwoodie Gold Member Supporting Member

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    Not understanding your point, if any, I can only observe that Romney seems to have some understanding of economics (unlike our "super smart" POTUS). I hope the voters do too.
     
  3. konradv
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    konradv Gold Member

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    Those are deductions from INCOME, not taxes. The additional revenue realized would be the average tax rate on that amount. Thought you cons knew about that kind of stuff!!! :eusa_eh:
     

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