If a policy choice has been made to increase the tax revenue collected from high income households, Congress should implement this choice in the least costly way possible. Limitations on deductions offer a mechanism to raise a given amount of revenue in a way that does not discourage an additional hour of work or increase the relative cost of consumption expenditures. It would be extremely unfortunate if Congress were to eschew this obvious solution to the fiscal cliff impasse in favor of marginal rate increases designed to deliver a “scalp” the President can hoist for his progressive supporters.
Exactly. --ts
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