Wednesday, April 10, 2013

Is another tax hike on the rich coming?

President Obama has proposed one.

Limiting the value of deductions to 28% has been discussed before.  The article doesn't make clear if that applies to the former tax freedom of muni bond interest, but it should, for the sake of consistency.  The charities will be going nuts over this one.

The proposal includes a cap on IRAs of $3 million. This is the first time I've heard that idea, and I'm curious as to just what they mean by that.  How could it be enforced?  It reminds me of the unlamented repealed tax on "excess accumulations" in retirement plans.  Ever more complexity, more work for accountants.  I'll see if I can find the budget documents on Tax Notes tomorrow.

I think this goes nowhere, given that we already raised taxes on "the rich" once this year.  Maybe we should wait and see how that works out before going to the well again.

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