Originally Posted by cutthemdown
The right will compromise on some revenue increases for sure Fed. What they wont budge on is raising the marginal tax brackets. At least IMO they won't.
You keep saying that, and completely ignoring that almost all of them have pledged (and backed up with action, repeatedly) to do exactly the opposite.
You're also a fool if you think that cutting deductions won't affect the middle class. The vast bulks of deductions/credits are a.) mortgage b.) retirement c.) child welfare and d.) state sales/income tax and e.) charitable deductions.
Those are five things that are leveraged by the lower and middle classes and changes to those deductions will have a HUGE impact on those groups.
You think Mitt Romney will even notice if he can't keep the $10,000 deduction on his mortgage and a $16,000 deduction from his 401k? What about the family making $60,000? Think they'll notice? What about you?
Hint: the reason 47% of people (instead of significantly less) don't pay income tax is due to deductions not because they don't quality for any marginal rates.
What happens if they raise the marginal rate on the over 250 grand bracket and it doesn't fix anything? Govt will make some more revenue but it won't stimulate the economy and could even cost some jobs.
When it doesn't work they will come for those middle class brackets.
You're a fool if you think we'll close a ~1T deficit without causing economic damage on some level. What we have to do, what I've said a dozen times here, is work the problem from both sides over several years. Provide steady but manageable pressure until we fix the problem.
Huge, abrupt spending cuts = millions more in the unemployment lines (and essentially no savings because they'll be getting unemployment insurance and we'll be losing tax revenue to boot!)
Huge, abrupt tax increases would also be problematic -- more so unless they are targeted at the upper earners rather than the lower earners -- being that the lower earners purchasing power is what drives economic growth (not money sitting in Bain Capital's pockets)