GOP Study: Tax Raises on Workers Could Raise Billions -- Reduce deficit by nearl

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Thu, 27 Jan 2005 18:16:03 -0800

[Zepps_News] #GOP Study: Tax Raises on Workers Could Raise

Billions -- Reduce deficit by nearly 3%!

 

 

 

 

<http://www.guardian.co.uk/uslatest/story/0,1282,-4761310,00.html>

 

Study: Tax Changes Could Raise Billions

 

 

Friday January 28, 2005 2:01 AM

 

By MARY DALRYMPLE

 

AP Tax Writer

 

WASHINGTON (AP) - Abusive tax shelters, inflated deductions and other

misdeeds cost the U.S. Treasury little when compared with money lost

because some employee benefits and wages escape taxation.

 

The government could collect $164 billion more in tax revenue over the

coming decade if it changed laws that exempt some employee benefits from

the taxes that pay for Social Security and Medicare, according to a

study released Thursday by the congressional Joint Committee on Taxation.

 

The panel, which provides technical expertise to tax committees,

detailed six dozen changes that could increase the amount of money

flowing into the U.S. Treasury, including ways to close the gap between

taxes owed and taxes collected.

 

Changes to employment taxes have the potential to raise the most

revenue, the study showed. Taxing various types of health coverage,

dependent care assistance, transportation and other employee fringe

benefits topped the list.

 

Another $57 billion could be gained if Congress made it harder for

self-employed people to organize their businesses in ways that allow

them to avoid paying Social Security and Medicare taxes.

 

The list gives lawmakers some options to weigh as they contemplate major

changes to government tax and spending policies during a time of

increasing federal budget deficits. Some may not prove politically

feasible.

 

Sen. Max Baucus of Montana, the top Democrat on the tax panel that

requested the study, said some of the proposals ``are simply common

sense ideas, others may be more controversial and will have to be

examined carefully.''

 

Others suggestions include the following:

 

- Congress could eliminate a benefit that lets homeowners deduct

interest payments on up to $100,000 in home equity loans. The committee

said the benefit ``acts as a disincentive to savings and is unrelated to

the purpose of encouraging homeownership.'' The U.S. Treasury would take

in $23 billion more over a decade if it's eliminated.

 

- The tax system for corporations that earn income in foreign countries

could be revamped to bring in roughly $55 billion.

 

- Lawmakers could expand telecommunications taxes to all voice and data

communications, including cellular and satellite telephones, cable and

satellite television, broadband, VOIP and other communications services,

to raise $11 billion.

 

- Tax writers could adjust laws that crackdown on corporate transactions

that shelter income from taxation by exploiting technical rules for no

real business purpose, increasing revenue $8 billion.

 

- Rules could be applied to prevent individuals from inflating their tax

deductions by overvaluing donated property, clothing, household items

and conservation easements for a combined revenue increase of about $5.5

billion.

 

Senate Finance Committee Chairman Charles Grassley, R-Iowa, said in a

statement that he ``noted with interest'' the suggestions to change laws

governing nonprofit groups and charitable donations.

 

``While we won't embrace every recommendation, we'll give the report a

close look,'' he said.

 

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--

Election 2004

The Triumph of the Swill

" The National Government will regard it as its first and foremost

duty to revive in the nation the spirit of unity and cooperation.

It will preserve and defend those basic principles on which our

nation has been built. It regards Christianity as the foundation

of our national morality, and the family as the basis of national

life. "

Adolph Hitler, My New World Order,

Proclamation to the German Nation

at Berlin, February 1, 1933

 

 

Not dead, in jail, or a slave? Thank a liberal!

Pay your taxes so the rich don't have to.

 

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