We're Doomed (yet again)

Connie Mack, former Senator and head of the tax reform panel that recently submitted recommendations to the Shrub for tax reform, was interviewed recently by the NYTimes. Max out those mortgage deductions and use up that company health care while you can. His stupidity is monumental and his arrogance is astounding (even for an R from the South.)

Well, the U.S. government has to get money from somewhere. As a two-term former Republican senator from Florida, where do you suggest we get money from?

What money?

The money to run this country.

We'll borrow it.

I never understand where all this money comes from.

When the president says we need another $200 billion for Katrina repairs, does he just go and borrow it from the Saudis?

In a sense, we do. Maybe the Chinese.

Is that fair to our children? If we keep borrowing at this level, won't the Arabs or the Chinese eventually own this country?

I am not worried about that.

Well, Connie, I am. And I'm worried that you're the one trying to fix the system and you don't even believe it's broken, just inconvenient.

It's been reported that you're hoping to reduce some popular tax breaks, including the deduction for home mortgage interest from a $1 million cap to somewhere in the $300,000 range. Are you worried that could hurt the middle class and discourage people from buying, say, a $500,000 house?

It depends on how you define middle class. I don't think that there would be a large percentage of middle-income families that would have a $500,000 house.

Sure there is, especially in expensive states like New York and California. You have already announced a proposal to eliminate the alternative minimum tax for individuals, which will cost the government $1.2 trillion in lost income over the next decade. Do you find it difficult to cut taxes post-Katrina, when the government is desperate for revenue?

The Congress and the president can address that issue. Of course, the president already has addressed that issue. He said there won't be any increases in taxes.

Indeed, he is still calling for tax cuts. He would like to eliminate the estate tax permanently.

I think there is a likelihood that Congress will deal with that issue before this term comes to an end. I would vote to eliminate, as we refer to it, the death tax. I think it's an unfair tax.

Really? I think it's a perfect tax. The idea behind it was to allow people to postpone paying taxes until they die, at which point they presumably no longer care. Why do you call it unfair?

Well, let's say, if you are in the farming business and you have the desire to pass this farm on to your children. The problem is that when your parents die, you have to come up with cash to pay the estate tax. One thing you don't have is cash. You've got plenty of land. So I just don't believe it's a fair tax.

That strikes me as a red herring. The issue is not really small farms, but zillion-dollar estates made up of stocks and bonds.

I don't know what the percentage breakdown is.

Kiss those mortgage deductions (and your ass) goodbye.