Penn Wharton Federal Budget Model

Investment Analysis Clubs Macro Economic Trends and Risks
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… surprisingly this includes most of the tax hikes and “skim” reductions I’ve been advocating for 30 years.

  1. Tax capital gains and dividends at ordinary rates; tax capital gains at death without stepped-up basis:

  2. Expand the base of employment taxes to cover all pass-through income:

  3. Disallow all itemized deductions except for charitable deductions: (and I’d limit charitable deductions to 50% of income/wealth)

  4. Remove the income exclusion of employer-sponsored health insurance premiums and introduce mandatory Health Savings Accounts:

I disagree with their idea of turning Medicare over to the for-profit insurance industry. You’re not going to make health care cheaper or better by adding an insurer’s overhead and profit to a doctor’s bill or hospital charge – Minimize the “skim”.

intercst

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None of these are new ideas.

You forgot eliminating the capital gains exemption on sale of your home.

All ways to increase govt income. And mostly tax middle class.

Everyone knows the wealthy will invest their saved tax money in creating new jobs.

I wonder if they have the votes in Congress to get this miracle tax cut done.

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This would cost the “JCs”. Pay cap gains on their stock grants at earned income rates? Not let them itemize the mortgage interest on their multi-million dollar mansion? Never happen.

The more likely case, is the current stated administration policy: turn the clock back to 1912, when tariffs provided a major share of government revenue, and there was no income tax.

Steve

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