Less paper, but fewer deductions (USA Today)

[highplainsdem]

http://www.usatoday.com/news/washington/2005-10-18-bush-tax-plan_x.htm


Posted 10/18/2005 12:07 AM

Less paper, but fewer deductions

By Richard Wolf, USA TODAY

WASHINGTON — Members of President Bush's tax commission planned to propose Tuesday to radically shrink and simplify federal tax forms, in part by doing away with popular deductions such as the one for state and local taxes.

The recommendation, which is subject to approval by the full nine-member panel, would replace the familiar 75-line Form 1040 with a 32-line "1040 SIMPLE Form." It would also reduce the number of related schedules and worksheets from 52 to 10.

"I've been told that this is the simplest form that would be available to all taxpayers in more than 50 years," said Jeffrey Kupfer, the panel's executive director.

<snip>

The deduction for state and local taxes and other tax breaks would have to be eliminated or reduced to help pay for the tax panel's recommended repeal of the alternative minimum tax, or AMT. Originally designed to ensure that the very wealthy paid their fair share, the AMT has been affecting more middle-class households. It threatens to raise taxes on 20 million taxpayers next year unless changes are made. The panel is required to propose raising as much money as repealing the AMT would cost.

<snip>

[Newsjock]

1. Translation: Up yours, California and New York

Where state taxes are high and incomes in many parts of the states are high as well, to compensate for cost of living.

You don't play along with Bushco, and this is how you get treated.

[unblock]

2. wait a minute. state/local tax deductions AXED to pay for amt repeal??

but, but, but -- state and local tax deductions is the single biggest reason why the middle class is getting pushed into amt-land anyway!!!

if you get rid of the state and local tax deductions, then YOU DON'T NEED TO GET RID OF THE AMT because it will most likely be back to affecting only rich people!!


well, indexing the damn thing for inflation would still be a good idea, but how hard is that??

[johnnypneumatic]

3. that's right

getting rid of the AMT will cut taxes on the rich people

[wakeme2008]

4. Bingo...

that the main idea. Not to index it but to save money for the big boys.