Romney's $25,000 "basket of deductions": state and property taxes will no longer be deductible!

[mainer]

I admit it. I have a very comfortable income from wages and regular earnings (not capital gains). I just did my own calculations of how I come out under Obama vs. Romney and I'm shocked. I've been an Obama supporter despite the fact I assumed I'd pay higher taxes under Obama. I thought that paying higher taxes was my duty as a citizen.

So imagine my surprise to realize that I'd actually be paying MORE taxes under Romney if I was limited to a $25,000 basket of deductions because I'd be unable to deduct my state and property taxes, as I do now.

http://online.wsj.com/article/SB10000872396390443749204578050362874705752.html"The current tax code allows filers to deduct state income tax, real-estate tax, and some sales taxes from federal tax. This rewards states for raising taxes. Under the Romney cap, many upper-middle-class filers wouldn't be able to write off all their state taxes. This would create political pressure to cut state taxes."

Right now, I pay a TON of state (Maine is 8%) and property taxes. They add up to well over the $25,000 basket. Overall, I'd end up far worse under the Romney tax plan.

Many upper income Americans assume that Romney would lower their taxes. They should think again.

The only taxpayers who'd make out like bandits under Romney are those whose income is primarily from capital gains. It's not high wage-earners. It's not small businesspeople. It's those who aren't actually working, but deriving their incomes from passive investments. The idle wealthy. And they are NOT the ones who will be reinvesting that income in business or hiring workers.

It's small business people and wage earners who are doing the active hiring. And their income is through regular income and wages. They're the ones who should be getting the tax breaks, because they're the ones reinvesting in the economy through business investments and hiring.

Not those who are sucking from the capital gains teat.