“There are ways to limit deductions, close loopholes and have the same people pay more of their money to the federal government without raising tax rates, which we believe will harm our economy.” — Speaker John A. Boehner at a House Republican Leadership Conference earlier this month.
That’s not entirely true, but the deductions/loopholes argument has become a lynchpin of Republican rhetoric lately. According to Eric Toder, Co-director of the non-partisan Tax Policy Center, increasing rates takes more money from the very rich (say, the top 0.1%) while closing deductions/loopholes shifts more of the burden to the very rich (the top 2%).
Yesterday’s post on the fiscal cliff negotiations revealed Boehner has agreed to raise rates on incomes over $1 million, but that would still only generate around $300 billion in new revenue. The remainder of the $1 trillion or so he and Republicans have agreed in principle too has yet to have its source specified.
We’d like to know what you think. How should more revenue be raised, if any, through a new deficit reduction deal?