End to tax ‘loopholes’ could also be tough sell for Democrats
Democrats empowered by election victories are pushing Republicans to deliver on tax changes to increases revenue and avert a looming fiscal crisis. But they face growing problems on their own front – a deep-pocket campaign to protect entitlements and some tax changes that if accepted could reach middle class voters.
Among the tax changes being considered are closing some of the bigger tax expenditure or so called “loopholes” — including those on mortgage interest and retirement plans.
While Democrats have targeted the highest wage-earners, most experts agree that closing the loopholes for just a few percent of Americans would generate little revenue, which could result in cuts reaching into the middle class.
“There’s a tension between the amount of dollars (Democrats) want and who they want to raise taxes on,” Alex Brill, a tax policy expert at the conservative think tank American Enterprise Institute, said Tuesday. “You cannot have it both ways.”