As the debt limit talks continue between Congress and the White House, I have a suggestion for how to both cut spending and simplify personal income taxes: eliminate itemized deductions.
Now all the special interests that have gotten their spending hidden in the tax code will squawk about this. But when you think about it, you realize that this spending only benefits those who are well off enough to actually itemize their deductions: those who need it the least. They can still take the standard deduction like everyone else.
Democrats will complain about losing the deduction for state taxes, and Republicans won’t want to lose the mortgage interest subsidy. With pain on both sides, this has the makings of a reasonable compromise.
The spending cuts would be significant. According to the Congressional Budget Office, the deficit would be reduced by $795 billion over five years and $2.5 trillion over 10 years.
Eliminating itemized deductions simplifies the tax code and cuts spending significantly. What’s not to like?
As an Amazon Associate I earn from qualifying purchases.
(0) comments
Welcome to the discussion.
Log In
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.