WSJ: Dems Fear Tax Loopholes Will Suffer in Boehner Plan

Monday, 17 Dec 2012 10:56 AM

By Newsmax Wires

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink
President Barack Obama is resisting House Speaker John Boehner’s proposal to raise $800 billion in new revenue by closing tax loopholes because a large percentage of Americans take advantage of those loopholes in Democratic states, The Wall Street Journal says in an editorial.

Boehner's ideas, inspired by Mitt Romney, would impose a limit on annual deductions. But since the rich tend to itemize their deductions more than average taxpayers pay higher marginal tax rates, they benefit more from deductions, according to the newspaper.

“Suddenly liberals are having second thoughts, and our guess is that this is because residents of high-tax Democratic-run states are about twice as likely to take advantage of tax loopholes as taxpayers in low-tax states,’’ the Journal says.

“For example, 44 percent of Connecticut filers itemize their deductions, but only some 21 percent of North and South Dakota residents do.’’

And in 2010, with the deduction for state and local income taxes for all states amounted to $249.7 billion, five liberal states—California, New York, New Jersey, Maryland, and Massachusetts—accounted for about $121.8 billion of that amount, according to the paper.

The Journal says that Democrats now “tend to represent states with ever-higher tax rates that prop up state and local governments dominated by public unions that demand ever-higher pay and benefits. The resulting state tax burden would be intolerable if much of it weren't passed off on Uncle Sam.

“Mr. Obama wants to raise tax rates, rather than eliminate deductions, so his fellow Democrats can keep raising state and local taxes without bearing the full economic and political cost. Tax equity and economic growth are the big losers.’’




© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Few 2016 Presidential Hopefuls Speaking Out on Ferguson

Thursday, 27 Nov 2014 08:11 AM

With the exception of GOP Sen. Rand Paul, potential 2016 presidential candidates have mostly shied away from commenting  . . .

Senate Dems Ever More at Odds With Obama, WH Policies

Thursday, 27 Nov 2014 07:47 AM

Criticism of President Obama's signature healthcare law by a top Senate Democrat this week laid bare post-election tensi . . .

Ex-Cop: 'If Someone Grabs My Weapon, That Changes Everything'

Thursday, 27 Nov 2014 07:44 AM

Law enforcement experts say Officer Darren Wilson largely followed police protocol when he used all necessary force to p . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved