"OlBlueEyes" wrote in message
...
wrote in
ups.com:
wrote:
Yep, they're all about lower taxes.....
Notice the 50% increase in the tax rate for the folks on the bottom end
of the scale? (Increases from 10% to 15%).
Uh... who brought it DOWN from 15 to 10 in the first place?
Mortgage deduction: Too bad it can't be saved for inexpensive "starter"
homes purchased by young families
In other words, people who don't itemize? The tax credit proposal is a
TAX CUT for those folks.
but a good percentage of folks who
are
allowing the government to subsidize their personal housing expense (by
enabling them to pay interest on $1mm mortgages with tax-free
dollars)
Eliminating the deduction for $1mm houses isn't going to make those houses
disappear. It's going to make the owners of those houses fire the maids
and gardeners whose salaries they were paying with their mortgage
deductions.
LOL. You really have a warped sense of reality. I have a $960,000 mortgage.
I pay $46,145 in interest each year. The deductibility of my home mortgage
saves me roughly $15,000 in taxes every year. Under the new proposal, I'd
only save $6,000...which means it's an $8000 tax increase. I don't have
maids nor gardners. Since my personal budget was set up before this
ridiculous idea started floating around, I also don't have an extra $8k
laying around each year. So I have to cut expenses somewhere (either around
my house, or at work). Since I'm self-employed, the easiest way to cut
expenses is to make some cuts at my business (ie--employee benefits,
salaries, etc)
The funny thing about supply side (trickle down) economics is that it also
works in reverse. Raise taxes, and the economy and jobs picture suffer.
In reality, the mortgage
interest deduction is probably safe- can you say "Catastrophic real
estate crash", otherwise?
The dirty little secret of housing boom is that it has sent property taxes
soaring without local governments having to enact tax rate increases.
That doesn't help things in Florida because of Save Our Homes (tax increases
capped at 3% per year)