Does the Gang of Six Cut Taxes or Raise Them?

Does the Gang of Six Cut Taxes or Raise Them? by Donald Maron

My response: This will only work if the housing industry is ineffective in blocking it. I am not sure why the powers that be think they can do better at this than was done in 1986. The wealthy know a tax increase when they see one, so we might as well raise rates and divert the tax expenditures for mortgage interest and property taxes to an increased child tax credit – which might actually encourage families to have children and thus reverse the aging crisis.

As important is the issue of why we are limiting the plausible baseline change to $1.2 trillion. In the end, the entire process is being undertaken to avoid simply letting the Bush/Obama cuts expire. The President pretty much holds the cards, provided the Democrats in Congress back him. At some point, Democrats may decide they want more in taxes – possibly letting the top 3 rates reset to permanent law, rather than just the top 2.