Who Wins And Who Loses Under Romney Deductions Cap Idea

Before last week’s presidential debate, and under pressure to explain how he’d pay for a costly 20 percent across the board income tax rate cut, Mitt Romney tossed off an idea that caught the attention of critics and allies alike.

Instead of naming which tax loopholes and benefits he’d like to end, Romney suggested imposing an overall itemized deductions cap at $17,000 — and eliminating deductions altogether for top earners. Though he elided key details, such as whether the cap would apply to the value of the deductions themselves or to the dollar amount by which individuals and households could benefit each year, it was the first time he’d offered anything approaching a specific plan to offset the huge projected costs of his proposed rate cuts.