Wednesday, December 01, 2010

Happily, I was partly wrong

Have glanced at the release of the deficit commission's report, and I'm pleased to report that the Commission recommends elimination of tax freedom for muni bonds.  At least the issue is on the table!

Taxation of giant tax-free foundations and endowments? No, that's still off the table, which is a shame.

Massive simplification of business taxation is proposed, a good thing. The mortgage interest and charitable deductions are retained, but provide benefit only at a 12% rate, not the taxpayer's marginal rate. Exclusion of employer paid health insurance premiums is largely retained, subject to caps.

And as I noted below, they adopted the "tax earmarks" phraseology, which I still think is bogus posturing.

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