- Joined
- Oct 17, 2007
- Messages
- 11,862
- Reaction score
- 10,300
- Location
- New York
- Gender
- Male
- Political Leaning
- Centrist
Governor Romney demonstrated that he can be Presidential and created the impression of being knowledgeable on a wide range of issues. He also tied each of his positions to the all-important issue of job creation. His debate performance should stem his recent weakening in the polls and allow him to partially recover some of the lost ground.
On the tax issue, he introduced a principle that his tax reform ideas will be revenue-neutral. As he's inclined to reduce tax rates, revenue neutrality will require changes to deductions, exemptions, and/or credits. He offered no specifics at this debate.
Previously, I believed he would have to do so. However, the President's off night probably allowed him to accomplish what he needed to achieve from this debate without getting into specificity. IMO, some specifics will be necessary if Governor Romney is to consolidate or even build on his debate success. He will need to shift from explaining the principles that will guide his policy to articulating a vision that the electorate would find credible and attractive. A stronger performance by the President at the next debate will likely make it necessary for the Governor to provide some specifics and it is unlikely that the President will have two consecutive weak performances given the debating ability he demonstrated during the 2008 Clinton-Obama debates.
For those looking for detail concerning the impact of closing deductions, exemptions, or credits (or "tax expenditures" in budget parlance), the 10 largest figures (using FY 2013 values) are:
1. Employer medical insurance exclusion: $180.6 billion
2. Mortgage-interest deduction: $100.9 billion
3. 401(k)-type Plans: $72.7 billion
4. Capital Gans: $62.0 billion
5. Employer pension plans: $52.3 billion
6. Imputed rental income exclusion: $51.1 billion
7. Non-business state and local tax deduction: $46.3 billion
8. Deferred foreign income: $41.8 billion
9. Charitable contributions deduction: $39.8 billion
10. Exclusion of interest on state and local bonds: $36.2 billion
Total for the 10 largest tax expenditures: $683.7 billion per year
If one takes the 25 largest tax expenditures, the amount comes to $985.6 billion per year. That second tier of tax expenditures includes accelerated depreciation (popular with businesses), Social Security benefits for retirees, Self-Employed pension plans, IRAs, exclusion of interest on life insurance savings, the Child Credit, and the capital gains exclusion on home sales. Afterward, the amounts rapidly fall off. The 50 largest tax expenditures amount to $1.098 trillion per year. That group of tax expenditures includes the individual medical deduction, expensing for R&D, Social Security benefits for disabled workers, and the exclusion of workers' compensation benefits.
Given that a number of these tax expenditures are popular, help comprise the "social safety net," and enhance state and local governments' ability to borrow, a candidate could stumble into a proverbial minefield when getting into detail. Nevertheless, barring flexibility on tax rates, that's the challenge that could confront Governor Romney if he is asked for at least some specifics on his tax reform idea. He can, however, gain cover if he focuses on the ideas outlined in by the Bowles-Simpson Report.
In the end, with his crisp, energetic, and organized performance, Governor Romney implicitly and affirmatively answered the question as to whether he can govern the nation. The next logical question concerns how he would actually govern.
On the tax issue, he introduced a principle that his tax reform ideas will be revenue-neutral. As he's inclined to reduce tax rates, revenue neutrality will require changes to deductions, exemptions, and/or credits. He offered no specifics at this debate.
Previously, I believed he would have to do so. However, the President's off night probably allowed him to accomplish what he needed to achieve from this debate without getting into specificity. IMO, some specifics will be necessary if Governor Romney is to consolidate or even build on his debate success. He will need to shift from explaining the principles that will guide his policy to articulating a vision that the electorate would find credible and attractive. A stronger performance by the President at the next debate will likely make it necessary for the Governor to provide some specifics and it is unlikely that the President will have two consecutive weak performances given the debating ability he demonstrated during the 2008 Clinton-Obama debates.
For those looking for detail concerning the impact of closing deductions, exemptions, or credits (or "tax expenditures" in budget parlance), the 10 largest figures (using FY 2013 values) are:
1. Employer medical insurance exclusion: $180.6 billion
2. Mortgage-interest deduction: $100.9 billion
3. 401(k)-type Plans: $72.7 billion
4. Capital Gans: $62.0 billion
5. Employer pension plans: $52.3 billion
6. Imputed rental income exclusion: $51.1 billion
7. Non-business state and local tax deduction: $46.3 billion
8. Deferred foreign income: $41.8 billion
9. Charitable contributions deduction: $39.8 billion
10. Exclusion of interest on state and local bonds: $36.2 billion
Total for the 10 largest tax expenditures: $683.7 billion per year
If one takes the 25 largest tax expenditures, the amount comes to $985.6 billion per year. That second tier of tax expenditures includes accelerated depreciation (popular with businesses), Social Security benefits for retirees, Self-Employed pension plans, IRAs, exclusion of interest on life insurance savings, the Child Credit, and the capital gains exclusion on home sales. Afterward, the amounts rapidly fall off. The 50 largest tax expenditures amount to $1.098 trillion per year. That group of tax expenditures includes the individual medical deduction, expensing for R&D, Social Security benefits for disabled workers, and the exclusion of workers' compensation benefits.
Given that a number of these tax expenditures are popular, help comprise the "social safety net," and enhance state and local governments' ability to borrow, a candidate could stumble into a proverbial minefield when getting into detail. Nevertheless, barring flexibility on tax rates, that's the challenge that could confront Governor Romney if he is asked for at least some specifics on his tax reform idea. He can, however, gain cover if he focuses on the ideas outlined in by the Bowles-Simpson Report.
In the end, with his crisp, energetic, and organized performance, Governor Romney implicitly and affirmatively answered the question as to whether he can govern the nation. The next logical question concerns how he would actually govern.
