29 August 2012 0 Comments

Analyzing Left Wing Analysis: Mitt Romney’s Tax Plan – Closing Loopholes for the Rich

The Leviathan State ensnares us all with the complications and expense of the tax code. See also “college perfesser” who makes the similar point about special tax preferences¬†.

“It isn’t easy being the intellectual frontmen for President Obama’s re-election campaign, as the boys at the Brookings-Urban Institute Tax Policy Center are discovering. Their ballyhooed study of Mitt Romney’s tax plan looks worse with each new examination. “

WSJ analyzes the analysis of Left Wing Brookings Institute’s of Mitt Romney’s Tax and Growth Plan. READ MORE TaxProf 14 August 2012 and Link to¬† WSJ 13 August 2012

Two key loopholes that seem to be incentives to saving benefit a very few. Mitt Romney moves toward a simpler, “flatter” tax which makes compliance less costly and tax calculation simpler, if not less painful.

“The study’s biggest distortion is its raw assertion that Mr. Romney would refuse to close certain loopholes. In the appendix, the Tax Policy Center lists, among others, two giant tax deductions that it says would go untouched: the exclusion of interest on tax-exempt municipal bonds, and the exclusion of interest on life insurance savings.

And by the way, the municipal bond interest exclusion mainly serves to encourage states and cities to borrow and spend more, which is the opposite of a saving incentive.”

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