Iowa Electronic Market: The temporary Romney surge has been halted
The latest change of mind by Romney was at the debate when he came out with the trial balloon about limiting the dollar amount of deductions. He had been saying all along that there would be no new taxes needed for his programs. So while he won't increase tax rates, he WILL limit deductions. This is simply semantics-playing at its worst and boils down to the fact that the tax tab will be going up whether you call it a tax rate hike or a deduction limitation.
It may SOUND good to simpletons to hear talk about deduction limitations but in fact such limitations will gut charities and will truly hurt the "non-rich" who are battling dread diseases and who have huge out-of-pocket medical bills. Are these the groups we want to soak to improve the economy?
Tax deductions for charitable contributions and for big medical bills are hardly what I would call "loopholes." They were intentionally made part of the tax code and for good reason. If there aren't some tax breaks for charitable contributions, where are the funds going to come from for homeless shelters, food pantries, medical research and the like? But politically it sounds good to "close the loopholes." Who does Romney think the's fooling? Limiting deductions is by any other name a hike in taxes - no two ways about it.