January 25, 2015

SO MAYBE REPUBLICANS SHOULD ACTUALLY PASS THESE OBAMA TAX PROPOSALS:

Americans like to hear that rich people are going to be forced to pay their “fair share.” They would probably be considerably less excited to hear that Obama wants to tax the earnings on educational savings accounts, or that any assets they inherit from their parents would be subject to a capital gains tax. To be fair, there are generous exemptions. But there are a lot of affluent-but-hardly-wealthy folks in blue states who would be very unhappy to hear that that nice Westchester home Mom and Dad bought for $15,000 in 1952 is going to be subject to a capital gains tax — at the same time as they’re suddenly paying income taxes on the capital gains and dividends in little Sally’s college account. . . .

Taxing the earnings on college savings accounts is even stranger, both because this hits the middle class, and because if you tax the earnings, there’s not all that much point to having the account; essentially, Obama is taxing college savings accounts in order to fund universal community college. This is scraping the bottom of the barrel, and what it tells you is that Obama has already run through most of the practical and politically palatable ways to tax the affluent.

Add to this, since Obama wants more taxes on “the rich,” a cap on the mortgage interest deduction at, say, $200,000, and an end to the deductibility of state income and property taxes. Yeah, this will hurt Blue State types harder, but hey, they voted for Obama. This is a win-win: He gets the blame, or he vetoes it.

Also, repeal the Hollywood tax cuts!

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