Monday, November 12, 2012
- Greg Mankiw (Harvard), How To Raise Tax Revenue From The Rich Without Increasing Tax Rates:
[I]f we cap itemized deductions at $50,000 and keep tax rates as they are today, we would raise $749 billion in tax revenue over ten years. Moreover, according to the TPC's distribution table, 96.2% of the extra revenue would come from the top quintile, with 79.9% from the top one percent.
- John Hayward, Taxing Big Blue:
[L]et’s hope the Speaker and the rest of the Republican negotiators are smart enough to propose revenue increases that will hurt liberals the most. Start by taxing the ever-loving crap out of Hollywood. I’ve suggested this before, and the esteemed Instapundit, Glenn Reynolds, was on the same wavelength last August when he suggested bringing back the 20% excise tax on motion picture gross revenue from the 1950s. ... Reynolds had other suggestions for revenue proposals – many of them involving the elimination of deductions, which seems to be the spirit in Washington at the moment – that would hurt blue state political machines and liberal institutions the most. Capping the mortgage interest deduction at $250,000, for example, would hurt those rich blue enclaves with high property values – 8 of the 10 richest counties in America voted for Barack Obama in 2012. Taxing trust funds and hoards of foundation money would hurt the Left, as outside of Hollywood, rich liberals are more likely to be sitting on piles of inherited assets, while conservative millionaires tend to be actively generating and re-investing income. Ending the federal tax deductions for state and local taxes – an idea prominently advocated by Newt Gingrich during the Republican primary – would end the practice of federal taxpayers subsidizing the government greed of those big-spending blue states. It’s actually a form of inter-state redistribution as it stands, so let’s do away with it.