Because such contributions are tax-deductible, lower deductions may mean higher tax bills, which would increase government revenue, at least for a few years.
A family in Texas, however, might have the same income but lower property taxes and no income tax and thus lower deductions for its federal tax return.
And so what I do is I bring down the tax rates, lower deductions and exemptions -- the same idea behind Bowles-Simpson, by the way.
Mr. Romney, who while campaigning in Ohio on Wednesday warned voters, "Don't be expecting a huge cut in taxes because I'm also going to lower deductions and exemptions," on Friday promised not to raise taxes on middle-income Americans.
"By the way, don't be expecting a huge cut in taxes," Mr. Romney cautioned at a rally in Westerville, Ohio, "because I'm also going to lower deductions and exemptions".
Get the rates down, lower deductions and exemptions to create more jobs, because there's nothing better for getting us to a balanced budget than having more people working, earning more money, paying -- (chuckles) -- more taxes.
I want to bring down the rates down, at the same time lower deductions and exemptions and credits and so forth so we keep getting the revenue we need.
But in order for us not to lose revenue, have the government run out of money, I also lower deductions and credits and exemptions so that we keep taking in the same money when you also account for growth.
The text of Moore's bill was not immediately available, but her release said rich tax filers could dodge drug tests if they avoid itemized deductions in favor of the typically much lower standard deduction, which can reduce a filer's tax liability by a set amount based on factors such as income and age.
Instead of distributing tax cuts in cash, or lower payroll deductions, the government could distribute the tax cuts in the form of gift or debit cards.
