Posted on 07/20/2011 4:19:53 PM PDT by NormsRevenge
WASHINGTON (AP) — A new bipartisan plan to reduce government borrowing would target some of the most cherished tax breaks enjoyed by millions of families — those promoting health insurance, home ownership, charitable giving and retirement savings — in exchange for lowering overall tax rates for everyone.
Many taxpayers would face higher taxes — a total of at least $1.2 trillion over the next decade, and perhaps more.
The details and impact of the plan, released this week by the bipartisan "Gang of Six" senators, emerged as President Barack Obama called congressional leaders to the White House on Wednesday to determine, in separate meetings, their bottom line for extending the nation's debt limit while also cutting spending at the greatest amount possible. The role of additional tax revenue remained a sticking point.
(Excerpt) Read more at news.yahoo.com ...
Yep, they should not agree to any tax code changes in this debt ceiling deal, force Democrats to bring it up in a separate bill.
I support getting rid of ALL subsidies regardless of who benefits from it. Mortgage deduction is a subsidy period!!!
If someone wants to flatten the tax structure and eliminate whatever deductions that is fine by me as long as the whole thing is revenue neutral. If it is not revenue neutral then it’s a play to steal more money and should be rejected. If it’s revenue neutral then we can deal with it later and not now.
This is all about stealing your equity from your home. Screw this.
I’m sick of these pieces of trash in govt all of them.
Lets talk about two families. One with sufficient tax deductions to itemize, and one that doesn’t.
All interest paid used to be deductible no matter what it was charged for.
We have written out rather large checks to the IRS for years. And you are right, if more people had to do it this crap would stop.
Just more redistribution of wealth. The tax code should NOT be used for social engineering.
So not taxing something is a subsidy? Kinda’ makes the word subsidy lose all meaning.
Good catch, you saved me the trouble.
The muslim commie in chief is about to go on yet another multi million dollar vacation at tax payer expense.
These Washingtonians have no idea whats coming.
All it takes is one outsider to gain the WH.
All bets are off, purge the GOP "leadership", jail and harass the communists in Congress, and slap the reds in the press upside the head by targeting their leaders.
That's just for starters
There is no moral, logical, ethical, or theological reason for non-home owners to subsidize the homes of others, and I’m a home owner. It is theft, pure and simple.
Good advice. I can’t help but wonder why anyone wouldn’t know that they could write off the basic items you suggested.
Even Charlie Rangel knows this. Turbo Tax Tim could attest to it as well.
“However, since we don’t live in it, we can’t deduct the mortgage interest.”
you said you rent it out. so its income property.
the mortgage interest is a expense that is deducted from the gross rental income. it is not taxed. this is on Schedule E.
you need to depreciate the building as well....its not a choice....if its worth 100k, you divide that by 27.5 and you get $3636.00 in depreciation....each year...(form 4562)
that has the effect of lowering the amount of income you have which determines your tax bracket....and taxes due.
this is all great stuff if you are making money somewhere else, like in your dental practice.....
...great news for those of us who own real estate. Why not change around the tax rate for dividends and capital gains while you're at it?
An efficient way to close the loophole relating to properties is to abolish the tax assessor; who’s subjectivity leads to similar houses in the same neighborhood, paying wildly different tax bills.
That tax assessor visit may have made sense during the days of landowners and slaves; seeing how much stuff a person owned was the Gov’s only best way to measure wealth.
I would like to think the US has come a long way since then.
Today just because someone buys a fancy car or inherits a fancy house does not mean they have the means to pay a fancy tax every year.
Measure the money not the property let individuals keep and cherish the pretty things in their life.
Mortgage interest should be deductible only if interest paid on a loan for a Corvette, or a new computer, or a vacation is deductible.
Yeah, it might, but the purpose of the tax code is to raise money for the government, not to favor one industry at the expense of others.
When Jack buys a $200K instead of a $400K house, he (probably) doesn't bury the money he's saving in a Mason jar in the backyard. He's investing and spending it in ways that create -other- jobs.
Read up on "Bastiat's parable of the glazier" if you want to know how this works, and the flaw in your thinking.
Those other jobs should not be penalized in order to subsidize the jobs in homebuilding. Most of which appear to be going to illegals, anyway.
There is no moral, logical, ethical, or theological reason for non-home owners to subsidize the homes of others, and I’m a home owner. It is theft, pure and simple.
Right now you pay taxes on income, then you pay taxes on the interest by not being able to write it off, then the banker pays tax on the interest because it is income to him.
The whole reason they wish to eliminate the mortgage interest deduction is because it is a vast source of more revenue, which they run through like shiite through a goose.
I can see the logical outcome of this, why not eliminate all business related expense, after all, it is just a subsidy.(!)Business should pay tax on the gross, not the net...how does that work out for you.
You want to see all costs of breathing go astronomical overnight, have at it.
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