…then we on the right are pleased to give you one. From National Review Online:
…While we would prefer no tax increase at all, eliminating this deduction (for State and local taxes) would be a sensible reform of the tax code, and could be paired with tax cuts elsewhere for a fiscally neutral simplification of our byzantine tax code.
Estimates suggest that eliminating this deduction would raise as much as $900 billion over ten years, though it may well turn out to be less as taxpayers modify their behavior in light of the new incentives. That won’t balance the budget with deficits running that much or more every single year, but it is nothing to turn the national nose up at, either: $900 billion would completely offset the estimated deficit for 2013. Progressives should welcome eliminating the deduction in that the new tax burden would fall much more heavily upon those earning $200,000 or more. As Reihan Salam points out, households in the $200,000-and-up range would pay an average of $5,166 more without the deduction, while those in the $30,000-to-$50,000 range would pay only $70 more…
Wouldn’t cost me a penny more, of course, as I live in a no-income-tax State. But it would cost people in New York and California a bundle, especially if they are making more than 250 grand a year and are getting hit with those very high California and New York State income taxes. But, given that those two States voted overwhelmingly for Obama, it stands to reason that they’ll be pleased as punch to fork over a bit more to Uncle Sam. Unless, that is, they were just stupid and thought that Obama was talking about people like Bill Gates when he said “make millionaires and billionaires pay their fair share”. We on the right can’t be blamed if people didn’t bother to actually look past Obama’s rhetoric and examine his concrete proposals.
This is not quite up to the standards I want – I still prefer my “wealth tax”, and I’ve actually come around to turning the screws a little harder on it. While still excluding farms/ranches, mines and factories which are family or individually owned, I’m thinking that a 10% annual tax on all wealth in excess of $2 million should do the trick. Which trick is that? The double trick of both making rich liberals pay for their liberalism and showing lower and middle class Americans just who’s side we’re on. The dirty secret of liberalism is that it is run by rich people and largely for the benefit of rich people – I want to drive that home. Next step is to eliminate charitable deductions for any organization which does not provide direct housing, clothing, food or medical aid to poor people…no more tax write-offs for donating to liberal political groups which have got themselves a tax exemption. Oh, and the group dispensing the help to the poor better have administrative expenses down to no more than, say, 30% of expenditures or it gets reclassified as a very heavily taxed racketeer influenced/corrupt organization.
I’m all set for the class war. Are you?