Wall Street Journal (12/05/12) John D. McKinnon
U.S. House Speaker John Boehner (R-OH) says a plan to limit tax breaks by capping them as a percentage of a taxpayer’s income is an option to consider as Congress and the White House work on an agreement to avoid the “fiscal cliff”. The plan was designed by Harvard University economics professor Martin Feldstein, a former Reagan adviser, who says it could generate substantial revenue. Supporters of the plan believe it would simplify the tax system as more people would take the standard deduction, but critics contend that it would require additional calculations and make the tax system more complex. Jason Furman, a top White House economic adviser, believes $400 billion to $500 billion in revenue could be raised over 10 years with a 2% cap—excluding charitable deductions—applied to households earning over $250,000 annually.
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