A $50,000 deduction cap would raise taxes on the rich as much as letting the Bush tax cuts for the rich expire would -- and without raising tax rates
Elections have consequences. And the big consequence of the 2012 election looks to be higher taxes for the rich. With President Obama still in office, that's what will happen on January 1, 2013 when the Bush tax cuts expire, whether John Boehner likes it or not. The big question is whether Obama and House Republicans can make a deal undoing the rest of the so-called fiscal cliff.
They can. If they listen to Mitt Romney.
Romney got some well-deserved criticism for his chronically math-challenged tax plan, but he did have a very clever idea when it came to tax reform. Rather than take on specific tax deductions -- and the constituencies ready to defend them -- he would limit overall deductions. Such a cap raises revenue without raising marginal tax rates, and it raises the most revenue from the rich. The chart below looks at how much more each income group would pay under a $50,000 cap, based on the Tax Policy Center's calculations.
See the tax changes for people making less than $200,000? Of course not. That's because the Romney's tax plan would hardly raise their taxes. But households making between $200,000 and $500,000? They would pay a couple thousand more in taxes. Millionaires could wind up paying almost a hundred thousand dollars more. This time with a logarithmic scale ...
The wealthiest households not only pay more than others under the cap, they pay most of the cap. In other words, households making a million dollars or more would pay 73 percent of the $59 billion a $50,000 cap would raise in 2015 if tax rates stay the same. Middle-class households mostly wouldn't get hit because they mostly don't take itemized deductions, and when they do they rarely take anywhere near $50,000 worth of them. Take a look at the chart below to see just how progressive a $50,000 cap would be.
But what about the question that is the bane of all good policy in Washington -- is it politically possible? Well, as Scott Galupo of the American Conservative points out, Obama wanted to pay for the failed American Jobs Act by limiting deductions for wealthy households. In other words, you could even say it was Obama's idea before it was Romney's. It's less clear whether Republicans are a hop, a skip and a jump away -- or more. Republicans obviously supported a cap during the presidential campaign, but they have a long history of disavowing their policy ideas once Democrats pick them up -- see Obamacare or cap and trade.
Boehner and the House Republicans have to decide whether they care more about tax rates or tax burdens; about incentives or incomes. Then they should ask themselves, WWMD? What would Mitt do?
Today’s empires are born on the web, and exert tremendous power in the material world.
Mark Zuckerberg hasn’t had the best week.
First, Facebook’s Free Basics platform was effectively banned in India. Then, a high-profile member of Facebook’s board of directors, the venture capitalist Marc Andreessen, sounded off about the decision to his nearly half-a-million Twitter followers with a stunning comment.
“Anti-colonialism has been economically catastrophic for the Indian people for decades,” Andreessen wrote. “Why stop now?”
After that, the Internet went nuts.
Andreessen deleted his tweet, apologized, and underscored that he is “100 percent opposed to colonialism” and “100 percent in favor of independence and freedom.” Zuckerberg, Facebook’s CEO, followed up with his own Facebook post to say Andreessen’s comment was “deeply upsetting” to him, and not representative of the way he thinks “at all.”
Why the Syrian war—and the future of Europe—may hinge on one city
This week, the Syrian army, backed by Russian air strikes and Iranian-supported militias including Hezbollah, launched a major offensive to encircle rebel strongholds in the northern city of Aleppo, choking off one of the last two secure routes connecting the city to Turkey and closing in on the second. This would cut supplies not only to a core of the rebellion against Syrian President Bashar al-Assad, but also to the city’s 300,000 remaining civilians, who may soon find themselves besieged like hundreds of thousands of others in the country. In response, 50,000 civilians have fled Aleppo for the Turkish border, where the border crossing is currently closed. An unnamed U.S. defense official toldThe Daily Beast’s Nancy Youssef that “the war is essentially over” if Assad manages to seize and hold Aleppo.
The bureau successfully played the long game in both cases.
The story of law enforcement in the Oregon standoff is one of patience.
On the most obvious level, that was reflected in the 41 days that armed militia members occupied the Malheur National Wildlife Refuge near Burns. It took 25 days before the FBI and state police moved to arrest several leaders of the occupation and to barricade the refuge. It took another 15 days before the last of the final occupiers walked out, Thursday morning Oregon time.
Each of those cases involved patience as well: Officers massed on Highway 395 didn’t shoot LaVoy Finicum when he tried to ram past a barricade, nearly striking an FBI agent, though when he reached for a gun in his pocket they finally fired. Meanwhile, despite increasingly hysterical behavior from David Fry, the final occupier, officers waited him out until he emerged peacefully.
By mining electronic medical records, scientists show the lasting legacy of prehistoric sex on modern humans’ health.
Modern humans originated in Africa, and started spreading around the world about 60,000 years ago. As they entered Asia and Europe, they encountered other groups of ancient humans that had already settled in these regions, such as Neanderthals. And sometimes, when these groups met, they had sex.
We know about these prehistoric liaisons because they left permanent marks on our genome. Even though Neanderthals are now extinct, every living person outside of Africa can trace between 1 and 5 percent of our DNA back to them. (I am 2.6 percent Neanderthal, if you were wondering, which pales in comparison to my colleague James Fallows at 5 percent.)
This lasting legacy was revealed in 2010 when the complete Neanderthal genome was published. Since then, researchers have been trying to figure out what, if anything, the Neanderthal sequences are doing in our own genome. Are they just passive hitchhikers, or did they bestow important adaptations on early humans? And are they affecting the health of modern ones?
By announcing the first detection of gravitational waves, scientists have vindicated Einstein and given humans a new way to look at the universe.
More than a billion years ago, in a galaxy that sits more than a billion light-years away, two black holes spiraled together and collided. We can’t see this collision, but we know it happened because, as Albert Einstein predicted a century ago, gravitational waves rippled out from it and traveled across the universe to an ultra-sensitive detector here on Earth.
This discovery, announced today by researchers with the Laser Interferometer Gravitational-wave Observatory (LIGO), marks another triumph for Einstein’s general theory of relativity. And more importantly, it marks the beginning of a new era in the study of the universe: the advent of gravitational-wave astronomy. The universe has just become a much more interesting place.
The number of American teens who excel at advanced math has surged. Why?
On a sultry evening last July, a tall, soft-spoken 17-year-old named David Stoner and nearly 600 other math whizzes from all over the world sat huddled in small groups around wicker bistro tables, talking in low voices and obsessively refreshing the browsers on their laptops. The air in the cavernous lobby of the Lotus Hotel Pang Suan Kaew in Chiang Mai, Thailand, was humid, recalls Stoner, whose light South Carolina accent warms his carefully chosen words. The tension in the room made it seem especially heavy, like the atmosphere at a high-stakes poker tournament.
Stoner and five teammates were representing the United States in the 56th International Mathematical Olympiad. They figured they’d done pretty well over the two days of competition. God knows, they’d trained hard. Stoner, like his teammates, had endured a grueling regime for more than a year—practicing tricky problems over breakfast before school and taking on more problems late into the evening after he completed the homework for his college-level math classes. Sometimes, he sketched out proofs on the large dry-erase board his dad had installed in his bedroom. Most nights, he put himself to sleep reading books like New Problems in Euclidean Geometry and An Introduction to Diophantine Equations.
Is oxygen in an exoplanet's atmosphere a sign of living beings, or something more mundane?
Huddled in a coffee shop one drizzly Seattle morning six years ago, the astrobiologist Shawn Domagal-Goldman stared blankly at his laptop screen, paralyzed. He had been running a simulation of an evolving planet, when suddenly oxygen started accumulating in the virtual planet’s atmosphere. Up the concentration ticked, from 0 to 5 to 10 percent.
“Is something wrong?” his wife asked.
The rise of oxygen was bad news for the search for extraterrestrial life.
After millennia of wondering whether we’re alone in the universe—one of “mankind’s most profound and probably earliest questions beyond, ‘What are you going to have for dinner?’” as the NASA astrobiologist Lynn Rothschild put it—the hunt for life on other planets is now ramping up in a serious way. Thousands of exoplanets, or planets orbiting stars other than the sun, have been discovered in the past decade. Among them are potential super-Earths, sub-Neptunes, hot Jupiters, and worlds such as Kepler-452b, a possibly rocky, watery “Earth cousin” located 1,400 light-years from here. Starting in 2018 with the expected launch of NASA’s James Webb Space Telescope, astronomers will be able to peer across the light-years and scope out the atmospheres of the most promising exoplanets. They will look for the presence of “biosignature gases,” vapors that could only be produced by alien life.
Once it was because they weren’t as well educated. What’s holding them back now?
Though headway has been made in bringing women’s wages more in line with men’s in the past several decades, that convergence seems to have stalled in more recent years. To help determine why, Francine D. Blau and Lawrence M. Kahn, the authors of a new study from the National Bureau of Economic Research parse data on wages and occupations from 1980 to 2010. They find that as more women attended and graduated college and headed into the working world, education and professional experience levels stopped playing a significant role in the the difference between men and women’s wages. Whatever remains of the discrepancy can’t be explained by women not having basic skills and credentials. So what does explain it?
When four American women were murdered during El Salvador’s dirty war, a young U.S. official and his unlikely partner risked their lives to solve the case.
On December 1, 1980, two American Catholic churchwomen—an Ursuline nun and a lay missionary—sat down to dinner with Robert White, the U.S. ambassador to El Salvador. They worked in rural areas ministering to El Salvador’s desperately impoverished peasants, and White admired their commitment and courage. The talk turned to the government’s brutal tactics for fighting the country’s left-wing guerrillas, in a dirty war waged by death squads that dumped bodies in the streets and an army that massacred civilians. The women were alarmed by the incoming Reagan administration’s plans for a closer relationship with the military-led government. Because of a curfew, the women spent the night at the ambassador’s residence. The next day, after breakfast with the ambassador’s wife, they drove to San Salvador’s international airport to pick up two colleagues who were flying back from a conference in Nicaragua. Within hours, all four women would be dead.