While presidential hopeful Barack Obama’s tax proposal has been met with a “too good to be true” reaction from many local seniors, a Brookings Institution economist thinks the plan is fairly sound.
“There’s a lot of good stuff there, (although) it’s not perfect,” said Benjamin Harris, a senior research associate with the Washington think tank’s Tax Policy Center.
Obama’s plan would provide tax credits to workers and homeowners, even if they don’t itemize their taxes. It would also mean those 65 or older wouldn’t have to pay any federal income tax, provided they earn less than $50,000 per year.
The Illinois Democrat proposes paying for the plan by closing down overseas tax shelters, doing away with tax credits that benefit private equity firms and closing what he called “corporate loopholes.”
And that’s what gives Harris pause.
While the Washington economist thinks paying for the plan is possible, he wouldn’t want to endorse it until he sees a more detailed proposal.
Still, Harris said, Obama’s proposal would actually achieve the campaign’s stated aim | to give money back to low- and middle-income households.
