Proposed tax plan would eliminate popular tax breaks

March 10th, 2014 6:06am
Proposed tax plan would eliminate popular tax breaks

Rep. David Camp's new tax plan would lower the tax rate for many Americans, but it would also get rid of a number of popular tax breaks, according to the Los Angeles Times. While it seems like no politicians think that the proposal will happen this year - tax reform is considered far too risky for such a crucial election year - elements of the package will probably reappear in the near future.

The plan would reduce the marginal tax rate on most individuals and businesses to only 10 percent, 25 percent or 35 percent, depending upon into which of three brackets they fall, according to the news source. In exchange, a number of popular, mortgage-centered tax breaks would disappear. 

While most politicians think that reducing these tax breaks is too risky for an election year, Christopher Faricy and Christopher Ellis conducted political research that found that how the bill is explained makes a difference. While the public was against removing tax breaks on average, among the respondents to whom the proposal was explained in a way that expressed how the tax breaks favored the rich, all respondents except self-identified Republicans skewed in favor of the proposal.

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