Bush tax proposals smell like middle-class taxhikes
Well, at least he never said "Read my lips", but the one solidly conservative thing that Bush has done is to reduce taxes, which has paid huge dividends in a revived economy and a steady growth rate. Now in the guise of a tax overhaul, a bi-partisan (groan) commission comes up with some lame tinkering which will essentially recoup the revenues lost from eliminating the minimal alternative tax with reduced deductibiity of home mortgages (what a bright idea), and reduced deductions for health care. Another idea was to reduce the deductibility of state and local taxes, another dumb idea which will hit middle-income taxpayers.
Conservatives pan ideas of Bush tax-reform -- The Washington Times, America's Newspaper
Major tax-reform advocacy groups, from the National Taxpayers Union to the Free Enterprise Fund, and some lawmakers urged Mr. Bush to scrap the panel's plan and offer a comprehensive overhaul of his own to replace the tax code with a simpler flat-tax system that would encourage savings and investment.
The panel, whose final suggestions will be made Nov. 1, revealed this week that it might recommend cutting back on popular tax deductions for home mortgage interest and tax-free employer-provided health insurance.
"Regardless of the details, the approach the panel is taking requires finding $1.2 trillion in tax hikes, which will hit the middle class and the economy hard," he said.
John Berthoud, president of the National Taxpayers Union, praised the commission's proposed repeal of the minimum tax, but said it dodged its central mission by failing to come up with a simpler system that would replace the current code with either a national retail sales tax or a flat-rate income tax.
"How will raising taxes on home mortgages and health care grow the economy?" asked Rep. Tom Tancredo, Colorado Republican. "If the president's panel gets its way, a majority of homeowners in Colorado would see their taxes go up. This tax increase would be aimed straight at the middle class."