Tax Increases Outlined
ABC’s Jake Tapper has the details:
- $3 billion over ten years by eliminating a tax break for corporate jet owners (which, officials noted, is not the same thing as the incentive in the stimulus bill for businesses to buy assets such as planes);
- $20 billion from treating as regular earned income the “carried interest” hedge fund managers make;
- $45 billion by eliminating oil and gas company subsidies;
- $60 billion from eliminating a business tax break known as LIFO (last in/first out accounting); and
- $290 billion from capping at 28% the amount Americans who earn more than $200,000 ($250,000 for a family) can make deductions for all itemized deductions, such as for charitable contributions or mortgages.
As evidence by President Obama’s press conference yesterday (we’ll have a details analysis on that tomorrow), he sees hiking taxes on a weak economy and playing class warfare as the answer.
It’s not. And it bears repeating – we have a spending problem.
If the President is concerned about the complexity of the tax code, he should propose comprehensive reform. Targeting one section of the tax code, ignoring others and larding up others is not the solution.