Monday, August 06, 2007
I saw snippets of the Republican debate in Iowa and it essentially sucked. Mitt Romney is thoroughly impressive in a vaccuum until you consider all of the crazy shit he has said recently. One of my major complaints is the extent to which no candidate on either side has discussed tax reform. Right now marginal tax rates are higher then need to be as a result of very expensive deductions (mortgage interest deduction, not treating employer provided health care as income, state and local tax deduction). The problem with these deductions is they are largely enjoyed by top earners but as a result top earners need to pay a higher marginal tax rate. Wouldn't it just make more sense to gradually get rid of these deductions and slowly reduce marginal rates. You could make the claim that you are cutting tax rates (if not taxes) while not advocating something totally reckless fiscally.