Raise Taxes on Whom?

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


It’s hard to know what the Bush administration plans to do with this:

President Bush’s tax advisory commission indicated on Tuesday that it would not propose replacing the income tax with a national sales tax or a value-added tax, but would recommend limits in the popular tax deductions for mortgage interest and employer-provided health insurance.

Interesting. Depending on how that mortage-interest deduction gets phased out, a lot of home values could end up dropping as a result, on the theory that currently, many folks are already bidding up the price of homes until it roughly offsets the value of the deduction. Since the deduction would only be limited rather than eliminated, I’m guessing this would disproportionately affect the upper-middle-class. (Same with the health care deduction for businesses, which is largely regressive.) To balance against this, the commission has recommended eliminating the Alternative Minimum Tax, which would give many of these—presumably upper-middle-class—homeowners an offsetting tax cut, depending on the details, but ultimately, the bulk of the AMT affects high income-earners, primarily. Best to wait until CBPP comes out with an analysis before judging.

In the past, the White House has screwed the poor in order to benefit the well-off; but creating winners and losers among the upper-middle class? Seems treacherous. Or maybe not: Kevin Drum once noted that this constituency is the easiest group for the Republicans to abandon when it comes to tax cut politics. Guess he was right.

Oh, and a flat tax is still under consideration.

Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

$400,000 to go!

payment methods

Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

$400,000 to go!

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate