Home » News
Home » News

How to avoid the cliff

Published December 27, 2012 1:01 am
This is an archived article that was published on sltrib.com in 2012, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

No resolution on the revenue side of the fiscal cliff will make everyone happy. However, one proposal is simple, doesn't raise income tax rates and puts the burden on those who have benefited most over the past few decades. Keep all the current tax rates and deductions as they are with only these two changes:

1. Cap the maximum total deduction at $50,000.

2. Consider the difference between the earned income tax rate and the current rate on dividends, capital gains and "carried interest" as part of the maximum total deduction. After that $50,00 threshold is reached, the latter are taxed at the higher income tax rate.

It's not a perfect solution, but it addresses the biggest concerns of both parties.

Rudi Kohler

Heber City




Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
comments powered by Disqus