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A new report from the Congressional Budget Office reveals that the ten largest tax breaks in the US we'll save taxpayers over 900 billion dollars -- share.
And just over half of those breaks will go to the top 20% of earners -- to make of this Jason Riley has some policies editorial board member.
At the Wall Street Journal.
My reaction to this is dot because -- can be -- and have -- Up and -- -- -- loves to talk about how much the wealthy benefit.
From tax breaks they don't like to talk about how this results from the steeply progressive tax system that they.
Prefer when you have the top 20% of earners.
You know -- sending Washington 70%.
Of their income taxes we have the top 1% and 37%.
And when you have 50% of Americans almost 50% paying no income tax with.
This is the inevitable result -- taxes are cut higher earners are gonna benefit this is how they want to -- I look.
Get some of these tax breaks you're talking about the charitable and -- -- contributions that people can make -- anybody can get phased.
-- mortgage interest deduction for example it turns into what looks like -- hit list war.
The administration thinks that there will go after and at least try and reduce put a cap on the mortgage interest deduction and -- There that there is an argument for tax reform.
What the question is whether -- the president is serious about doing I mean traditionally tax reform has meant.
Lower rates in return for closing loopholes.
This -- has already raised taxes tremendously but he's captain plays.
Carve outs for industries that he favors like wind so he wants it both went to -- question here is whether he's serious the White House is serious about reform.
Well I -- I'm talking about not reform and not -- the tax rates but something that would be to raise even more rather narrow and it's backdoor way of raising taxes additionally.
Is reducing the benefit that that wealthier Americans would get from -- the mortgage interest deduction.
The mortgage interest deduction is there are obviously there's a huge lobby that's gonna fight that there that there are other.
There are loopholes that could be close and and good arguments to make for closing them.
What we have to keep in mind having that the president's goal is to raise revenue socialized medicine is expensive -- it -- And he needs to permanently increase the size of government in order to pay for some of these items on his agenda so his real goal here is to increase revenue.
The goal of conservatives meanwhile is to spur economic growth if you want to increase revenue.
That's the way to do what the president would prefer to do it by squeezing the top earners even more than he's done -- already.
I think the biggest argument in favor of tax reform right now has to -- the Cyrus scandal doesn't not -- every every conservative -- that we've had on this program.
-- they always comment -- what they're saying with that that you get rid of the mole rats that as our tax code or at least try and Whittle it down a little bit and you reduce the power of the agency.
Well it's certainly -- put a focus on the IRS and I think the idea that the the targets of the IRS or -- political.
Targets is this something anathema to many Americans so to the extent that it focuses the attention of the IRS -- what they're up to get it's it's all good.
What in terms of tax reform how much momentum do you think it has in Washington right now.
I think these scandals -- are getting in the way of of anything the president wants to do going forward.
Bomb once they blow over if they blow over it might -- momentum 11 good indications that Max Baucus the senator from Montana.
-- the Senate Finance Committee.
Wants to do this he's not running for reelection he says one of the things that all -- enable him to do is focus on.
On reforms and not and -- sort of take the politics out of it at least as far as his personally concerned so that's a good sign I think.
And I have to think getting back to the IRS a scandals that give it certainly gives -- a lawmaker a selling point to their constituents support for doing at this point -- -- turning a political scandal into something political and may be beneficial for everybody.
Certainly it was great to -- day thank you you so much makes talking -- it's exciting.
But I -- That's kept the IRS still scares the -- Jesus -- -- -- can't help that thanks Jason.
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