In addition to the limits on write-offs for mortgage interest, the main elements of the proposals would abolish the alternative minimum tax, erase deductions for state and local income and property taxes, restrict tax-free employer-paid health insurance, and reduce the deductions that many taxpayers can claim for charitable donations.
"Panel Urges Big Cut in Mortgage Deduction", New York Times, Wednesday, November 2, 2005
In addition, The top tax rate for the wealthiest taxpayers would be lowered, to 30 percent in one alternative, and 33 percent in the other, from 35 percent now.
Mr. Bush, in theory if not in practice, put this panel together. Besides the changes mentioned above on personal income taxes, it recommends changes for business:
The plans would lower the top tax rate for businesses. One plan would let businesses write off the cost of investments in plants and machinery in the year of the cost, a system known as expensing, and would disallow writing off interest payments.
So, the vast majority of taxpayers, including Bush's base, get the shaft again. Yet, the wingnuts have time to scream about a Supreme Court appointment, same-sex marriage, and abortion rights that effect a small portion of the population. Will they scream that they are going to be poorer again?
More and more I believe that a straight forward tax rate on individuals, no matter what their income, and businesses, no matter what their size, would be the fairest system of all of them. It would generate more income for the the US; it would treat everyone the same; and there would be fewer complications.
Now, to finish the title of this post...
up your ass...