Super Committee Republicans are floating a trial balloon that would produce new tax revenue, in apparent contravention of Grover Norquist’s taxpayer protection pledge, according to Wall Street Journal editorialist Stephen Moore.
But as Moore explains that the offer has a catch:
One positive development on taxes taking shape is a deal that could include limiting tax deductions, perhaps by capping write-offs on charities, state and local taxes, and mortgage interest payments as a percentage of each tax filer’s gross income. That idea was introduced on these pages by Harvard economist Martin Feldstein.
In exchange, Democrats would agree to make the Bush income-tax cuts permanent. This would mean preventing top rates from going to 42% from 35% today, and keeping the capital gains and dividend tax rate at 15%, as opposed to plans to raise them to 23.8% or higher after 2013.
Interesting: in exchange for Republicans giving up their nonsensical fantasy world about no-tax Grover, Democrats give something real in exchange.
That is the downside of dealing with Dimwits: for the longest time, you have to negotiate and you give up real stuff while they give up their flat-world theories.
This is supposed to be real world negotiations where we give real value for real value, not some Cargo Cult world where we get the deed to your island paradise in swap for a couple of cartons of Hershey's candy and Lucky Strikes.
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