Proposal to limit tax deductions for the wealthiest? Rangel and Baucus are against it

[babylonsister]

Obama’s Budget Faces Test Among Party Barons

By JACKIE CALMES and CARL HULSE
Published: March 9, 2009


WASHINGTON — What the Democratic barons of Congress liked best about President Obama’s audacious budget was his invitation to fill in the details. They have started by erasing some of his.

The apparent first casualty is a big one: a proposal to limit tax deductions for the wealthiest 1.2 percent of taxpayers. Mr. Obama says the plan would produce $318 billion over the next decade as a down payment for overhauling health care.

But the chairmen of the House and Senate tax-writing committees, Senator Max Baucus of Montana and Representative Charles B. Rangel of New York, have objected to the proposal, citing a potential drop in tax-deductible gifts to charities.

Billions in savings from cutting government subsidies to big farmers and agribusinesses? No dice, said Senator Kent Conrad of North Dakota, who heads the Senate Budget Committee.

Mr. Conrad also panned the limit on tax deductions. And his criticisms of those savings proposals aside, Mr. Conrad said Mr. Obama’s 10-year plan would not do enough to reduce future debt.

more...

http://www.nytimes.com/2009/03/10/us/politics/10chairmen.html?_r=1&hp

[w4rma]

1. What's your plan to raise money, Mr. Conrad? Since you don't like this one. (nt)

[snappyturtle]

2. Who are they trying to protect? From what I understand this proposal

would reduce the amount of the deduction of the donation....that's all. Matter-of-fact, it was also explained that if, e.g., a person in a high income tax bracket donated a thousand dollars he could deduct something like three hundred fifty dollars but a person in a lower income tax bracket would only get a hundred dollars deducted for the same donation! THAT sound fair. :sarcasm:

SO, I don't understand the Baucus/Rangel objection.

[babylonsister]

3. Themselves and their corporate 'obligations'? nt

[snappyturtle]

4. Probably, especially their fat family foundations. I know that these foundations

do some good but I also think they are a form of self-aggrandizing. Keeps family names high on the dance card list of the socially elite. Really, if you had TONS of money, you'd HAVE to do something with it; I don't think it's the same sacrifice that the little guy makes on his monthly pay stub. imho

[pnutbutr]

5. mortgage interest deductions is part of this

and the proposed mortgage amount it will be eliminated for could possibly be $250k and above which cuts right into the middle class. I cannot support this in that form and would prefer deduction reduction instead of complete elimination.