Ya gotta read this….
There is broad consensus, according to five sources familiar with the behind-the-scenes talks, on some of the best ways to pay for cutting both the individual and corporate tax rates.
The options include capping the mortgage interest deduction for homeowners; scrapping people’s ability to deduct state and local taxes; and eliminating businesses’ ability to deduct interest, while also phasing in so-called full expensing for small businesses that allows them to immediately deduct investments like new equipment or facilities….
In addition to the revenue raisers such as eliminating the deduction for state and local taxes — a benefit that disproportionately hits taxpayers in high-cost states like California, New York, New Jersey and Massachusetts — the tax negotiators are scouring former Republican Rep. Dave Camp’s 2014 tax plan for other ideas.
One idea quietly being discussed would be taxing the money that workers place into their 401(k) savings plans up front: an idea that would raise billions of dollars in the short-term and is pulled from the Camp plan. This policy idea is widely disliked by budget hawks, who consider it a gimmick; the financial services industry that handles retirement savings; and nonprofits that try to encourage Americans to save….
White House officials, for example, have been holding weekly calls with outside conservative groups to keep them informed of the progress of tax reform. Lately, the White House has been urging conservatives to stress in high-level talking points that any tax plan would help the middle class and average families and help to keep jobs in the U.S., according to a conservative activist familiar with the calls….Share on Facebook