Tuesday, October 9, 2012

Schumer Avoids Tax Trap

Schumer Avoids Tax Trap | Jared Bernstein | On the Economy
“If upfront rate cuts are the starting point for negotiations on tax reform, it will box us in on what else we can achieve. Certain conservatives will pocket the rate reductions and never follow through on finding enough revenue elsewhere in the code to reduce the deficit. Or, if they do, it will almost certainly come out of the pockets of middle-income earners.”  - Sen. Charles D. Schumer (D-NY)
"Senator Avoids Trap: First, Senator Chuck Schumer, to his great credit, understands the tax reform trap.  Here at OTE, we’re always warning folks to be aware that when politicians talk about a “grand bargain” on taxes that lowers the rates and broadens the base, you’ve got to be extremely vigilant about not getting stuck with a lot of the former and a little of the latter. “Rate cuts” sound good to everyone and “base broadening” sounds harmless enough.  But the way these debates go, your loophole is my prized “job-creating investment incentive.”  Just ask candidate Romney, who’s very specific about those rate cuts—20% across the board!—but completely silent on the base broadeners. So I was happy to see Sen Schumer say this about that".
  'via Blog this'

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