Comment Re:Tax plan-- please explain it to me. (Score 1) 698
It's amazing how few people have actually addressed your question.
You're right to point out that many high-income (and thanks for not conflating "high-income" with "wealthy") taxpayers earn most of their income from capital gains (and interest and dividends). But Romney's plan does not propose eliminating capital gains tax for high-income individuals -- that's only for taxpayers with AGI below $200,000 (citation here). It does keep in place the lower capital gains tax rates that were part of the 2001-2003 Bush tax cuts -- the rationale being that lower rates on money earned from investment *should* lead to more investment and growth in the overall economy.
Broadening the base means things like capping or eliminating the number of deductions that people can claim on their tax returns. High-income people would pay taxes on a greater portion of their overall income. Romney has refused to commit to a specific proposal on this part, so we're left to speculate. Harvey Rosen has an interesting analysis of how it *could* be mathematically possible to "broaden the base" enough to offset the lower rates -- even with very little additional growth generated via the lower rates. In a nutshell:
- 1. Tax employer-provided health insurance as income -- could result in a lot of new tax revenue.
- 2. Tax "inside buildup" -- a type of tax-sheltered life-insurance income.
- 3. Keep the home mortgage deduction only for lower/middle-income earners. People in the top tax bracket might not get any of the usual deductions for medical expenses, charitable donations, or state and local taxes paid.
You can argue that a Romney administration would never go that far in eliminating deductions and loopholes, but that's different from "mathematically impossible". The Rosen paper puts all of this in a chart so you can compare the effects of different assumptions.
There's a pretty comprehensive round-up of people making the case that Romney plan could work here. (Yes, it's from a libertarian perspective. No, I'm not an economist or a libertarian myself.)
Comment Re:This is great news (Score 1) 63
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Comment Braid? (Score 1) 189
What came first, the music or the misery? People worry about kids playing with guns, or watching violent videos, that some sort of culture of violence will take them over. Nobody worries about kids listening to thousands, literally thousands of songs about heartbreak, rejection, pain, misery and loss. Did I listen to pop music because I was miserable? Or was I miserable because I listened to pop music?
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