Senator Graham says he backs eliminating most tax deductions

(CBS News) On "Face the Nation," Republican Senator Lindsey Graham of South Carolina said he supports eliminating most tax deductions, and offered more specifics than presumptive Republican nominee Mitt Romney did regarding his tax plan.

Graham said, "I think we should eliminate all deductions except interest on your home and charitable giving with a cap," putting him in line with some of the bipartisan proposals discussed on Capitol Hill, including the Simpson-Bowles plan.

"It's a trillion [dollars] a year we give away in deductions," Graham said, saying they should be put back in the Treasury.

On the same program, presumptive Republican nominee Mitt Romney said he would "limit [deductions] for high income individuals" in order to "keep the progressivity" of the tax code.

However, the former governor still gave no specifics to his plan, saying he would "go through that process with Congress."

Graham said, "We know what to do; we should do it," noting that Republicans are going to have to compromise on revenue and Democrats are going to have to compromise on the entitlement programs of Medicare and Medicaid.

"We're not going to do it without presidential leadership," Graham said, "so I hope Governor Romney and President Obama will do something before the election to show this leadership."

Former Vermont Governor Howard Dean, who also appeared on "Face the Nation," said he agreed.

"I didn't think that was a particularly unreasonable suggestion that he just made," Dean said.

[bbglow]

Why is it nearly impossible to purchase manufactured items made in America from American corporations ...? Stop the war on the American worker ...!

[EugenePatrickDevany]

The top 10% of the people already have 75% of the wealth and 60% of America (which includes the middle class and the poor) share 2% of the wealth. If you believe that business will add jobs only when there is a demand for their goods and services than you must also conclude that any tax breaks for business and the well-to-do are a waste of money.

Ask yourself why the Simpson-Bowles Commission was not permitted to study sales and wealth as part of tax reform? A small VAT could lower the corporate rate and make American business the most competitive in the world. Net wealth is the only real measure of ability to spend that sustains our domestic economy.

Business should supply about 20% of the tax revenue. Because 8 out of 10 businesses are no longer taxed as C corporations a value added tax ("VAT" - as used in every other developed country) is needed to equalize the different business rates and to lower the corporate rate. The combination of 8% corporate income tax and 4% VAT on business enables the elimination of all business tax loopholes, corrects the deferral of foreign corporate profits (by eliminating the 35% marginal rate) and would make American business the most competitive in the world.

For individuals, taxation based on both net wealth and income (in equal measure) is the middle ground of the political ideologies of the extreme left (supporting progressive wealth taxation) and the extreme right (supporting a regressive flat tax on income). The combination of 2% net wealth tax (excluding $15,000 cash and retirement funds) and 8% individual income creates a mathematically progressive rate structure. It is similar to the tax credits and escalating tax brackets of the current code except that it uses net wealth rather than hundreds of other types of tax expenditures (i.e. deductions, credits and "loopholes") to raise or lower one's tax liability.

This tax reform enables the elimination of regressive payroll taxes, and estate, gift and capital gains taxes which interfere with investment freedom. A typical family would save or spend $640 more per month; business would add jobs to meet the increased demand and owners would reap handsome profit by keeping 92% of income. The new economic ecosystem would be self sustaining, with no (Democratic) government stimulus or (Republican) tax expenditures.

No person has identified a legal, logical or economic reason why this 2-4-8 Tax Blend would not produce sustainable economic recovery as promised.

Eugene Patrick Devany, JD, MPA
www.TaxNetWealth.com

[befree69]

Regarding Obams NEW Immigration law weather you agree or disagree with the new law for all you people / morons who are saying he is doing it because he wants the latino vote are simple WRONG , because he will already begetting the latino vote he MAY GET a handful to go to the polls and vote for him BUT , even without this new law they would NEVER HAVE VOTED FOR ROMNEY that's a real simple FACT , the few that MAY go to the polls and vote for President Obama , will be surly offset by the many independents who will vote against him on his new law I'm a liberal / independent and I'm NOT in LOVE with the new law , NOT sure IF I like it BUT the simple FACT is we have been talking about this problem of dozens dozens of years now and NOTHING has really been done , even THE KING OF THE REPUBLICAN PARTY PRESIDENT RONAL REAGAN couldn't solve the problem in FACT he took the FAR LIFE APPROACH and gave them all them al to stay .

THE FACT is President Obama has deported more illegal's than any other president 1.1 MILLION in just 3 1/2 years so he MAY NOT talk tough BUT HE DOES THE TOUGH WALKING and lets be honest that's what really counts.
BTW MAYBE thereason President Obama did NOT fix Immerigration his 1st 2 years in office MAYBE it was because he was FIXING Generl Motorand the rest of the auto Ind.and the banks ATM's NOTE to mention the WAR etc he had a VERY FULL PLATE

[befree69]

Regarding Obams NEW Immigration law weather you agree or disagree with the new law for all you people / morons who are saying he is doing it because he wants the latino vote are simple WRONG , because he will already begetting the latino vote he MAY GET a handful to go to the polls and vote for him BUT , even without this new law they would NEVER HAVE VOTED FOR ROMNEY that's a real simple FACT , the few that MAY go to the polls and vote for President Obama , will be surly offset by the many independents who will vote against him on his new law I'm a liberal / independent and I'm NOT in LOVE with the new law , NOT sure IF I like it BUT the simple FACT is we have been talking about this problem of dozens dozens of years now and NOTHING has really been done , even THE KING OF THE REPUBLICAN PARTY PRESIDENT RONAL REAGAN couldn't solve the problem in FACT he took the FAR LIFE APPROACH and gave them all them al to stay .

THE FACT is President Obama has deported more illegal's than any other president 1.1 MILLION in just 3 1/2 years so he MAY NOT talk tough BUT HE DOES THE TOUGH WALKING and lets be honest that's what really counts.
BTW MAYBE thereason President Obama did NOT fix Immerigration his 1st 2 years in office MAYBE it was because he was FIXING Generl Motorand the rest of the auto Ind.and the banks ATM's NOTE to mention the WAR etc he had a VERY FULL PLATE

[animalkingdom137]

When I read that Lindsey Graham considers the one trillion dollars not given to the US government because of tax deductions to be money "given away" to residents of the US I wanted to vomit. This creep and Howard Dean and others of their ilk honestly believe that all the money earned by taxpayers belongs to the US government and that the government should be the decision-maker of how much of its money you get to keep. This idea is abhorrent to freedom and liberty in a free society and I reject it and them for believing it. If we here in SC cannot get rid of Lindsey Graham in 2014 in a GOP primary we will be stuck with him forever. He does not want the people in this country to be free. He sees us as pawns to be manipulated. We need to support the Liberty Movement everywhere but especially in SC if we want to get rid of dangerous politicians like Graham.

[kesac4650]

I think it is interesting, all the people who can understand that Walmart can lower costs, and increase volume and so increase revenue, but they think the only recourse for the Federal government to increase revenue is to raise taxes, whether that might choke off our economic engine, or not.

[ctyakee57]

It interesting that you view this proposal as a raise on taxes, I see it as a way to eliminate a Billion dollars of spending cuts already proposed by the House Republicans.

[Martha12345]

Another pearl of wisdom from a spineless senator.

[TJphoto]

Mr Romney is always short on specifics. "Say what you mean, and mean what you say". Gen George Patton.

[RepublicansRFiscalLibs]

Nice to see some intellect in government.

I've been saying this about corporations and individuals for a looooooong time.

Woohoo!!!

[kesac4650]

Corporations and individuals are two different things. Every tax a corporation pays is passed on to their customers. If you want to tax the middle class and the consumer, that is the way to go about it.

[sjc_1]

"We know what to do; we should do it,"

That is exactly right, the Congress passes the laws and the Executive branch takes action. You do not need the White House to say or do anything, just get rid of the deductions and loopholes, bring in revenue and close the deficit.

[kesac4650]

It is the AMT tax all over again. Congress passed it, an then guts it or cancells it every year. It was once called the "millionaires tax". Pelosi and Reid began calling it the "Blue States Tax early in 2008.