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The intensity of yesterday's comments pointed up how emotional and symbolic the issue of deductibility has become for New Yorkers.
"Having some sort of deductibility makes sense," said Mr. Daschle, who is up for re-election next year in South Dakota, one state with no income tax.
He said that he was the one who had defended the issue of deductibility in the first place and that he had fought for months to help retain deductions for local and state income taxes and for the nontaxable status of some municipal bonds.
In line with intuition, they find that higher corporate tax rates increase the value of deductibility provisions.
Another is to call time on the tax deductibility of pension contributions, or at least create a new streamlined rate of deductibility for all taxpayers (as the Liberal Democrat minister Steve Webb has proposed), which would not be so odd in the context of all the new freedoms the government has given savers to cash in their pension pots.
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One potential source of increasing tax revenue is the proposed removal of tax deductibility of medical scheme contributions, the value of which was estimated to be almost US$22 billion in 2007 [ 40].
In reality, a handful of financiers recognized the possibilities in the tax code of the deductibility of interest and that stock prices were dirt-cheap.
The first of the two models on the right actually expands the current system of tax deductibility of health insurance and direct medical expenses to individuals and the self-employed.
The obvious way is to get rid of the deductibility of corporate interest.
That is more than the cost of the deductibility of home mortgage interest, according to the Employee Benefit Research Institute.
As the Senate Finance Committee was wrapping up its work on tax-revising legislation this week, the question arose of the deductibility of business meals, often called the three-martini-lunch.
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