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Key Tax Breaks at Risk as Panel Looks at Cuts
WSJ.com ^ | 10/25/10 | Damian Paletta

Posted on 10/25/2010 12:42:51 PM PDT by KansasGirl

Sacrosanct tax breaks, including deductions on mortgage interest, remain on the table just weeks before the deficit commission issues recommendations on policies to pare back with the aim of balancing the budget by 2015.

The tax benefits are hugely popular with the public but they have drawn the panel's focus, in part because the White House has said these and other breaks cost the government about $1 trillion a year.

At stake, in addition to the mortgage-interest deductions, are child tax credits and the ability of employees to pay their portion of their health-insurance tab with pretax dollars. Commission officials are expected to look at preserving these breaks but at a lower level, according to people familiar with the matter.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS: bho44; biggovernment; congress; dccrooks; democrats; economy; elections; fail; government; mortgages; obama; realestate; taxes; wsj
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If they eliminate the mortgage deduction, child tax credit, and the ability for my husband to pay for our health insurance with pre-tax $$$, this will most likely increase our taxes by $6,000+ a year. $3,000 from elimination of the child tax credit alone. We CANNOT afford it.

If this happens, I say screw it. We will just sell our house and business. We will become net takers not net makers. My husband works about 70 hrs a wk. to provide us the lifestyle that we live and we are far from rich! Why should he work his azz off just to send the money to Washington D.C. to pay for some stupid bureaucrats cushy, worthless job and provide cash for sleazy politicians to buy votes? Greedy, corrupt crooks!

I am seeing red and no doubt the filthy Rats will push this through in the lame duck session.

One more thing--Why no talk of eliminating the "earned income" tax credit?

1 posted on 10/25/2010 12:42:55 PM PDT by KansasGirl
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To: KansasGirl

Money the govt. does not collect in taxes is not a “cost”. If they try to raise taxes by removing these deductions, see what happens to revenues then.


2 posted on 10/25/2010 12:47:45 PM PDT by mkmensinger
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To: KansasGirl

I’d trade all my deductions for a flat tax, but that’s not going to happen soon.


3 posted on 10/25/2010 12:47:45 PM PDT by AU72
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To: KansasGirl

If they continue down this road, they’re gonna be engulfed by the mother of all Tsunamis!! The TEA will be scalding HOT!!


4 posted on 10/25/2010 12:48:00 PM PDT by Jim Robinson (Rebellion is brewing!! Just vote them OUT!!)
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To: KansasGirl

KG, you’re just angry and not thinking clearly. Take a deep breath and be proud that you can help redistribute your wealth to its rightful owners.


5 posted on 10/25/2010 12:48:29 PM PDT by ProtectOurFreedom
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To: AU72

That is not what they are recommending. The are going to recommend back door tax increases!

They are going to wreck the economy even further if they pass these tax increases! Then no doubt, the sleazy media will blame it on the new Republican Congress.


6 posted on 10/25/2010 12:50:17 PM PDT by KansasGirl (No more taxpayer money to National Progressive Radio (NPR)!!)
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To: KansasGirl

“the White House has said these and other breaks cost the government about $1 trillion a year.”

I’m sick of the government calling tax breaks and reductions “costs”! Failure to take someone’s property from him is NOT a “cost”-it’s less stealing!!


7 posted on 10/25/2010 12:51:04 PM PDT by Spok (Free Range Republican)
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To: KansasGirl

......................White House has said these and other breaks cost the government about $1 trillion a year...............

“These and other tax credits lower personal taxes by about $1 trillion a year”

There fixed it!

Zer0 and the marxist administration presume they own all of your earnings and property, everything. So by not taking that extra trillion, it is “costing them!”


8 posted on 10/25/2010 12:52:40 PM PDT by Noob1999 (Where's Meg Whitman when we need her?)
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To: ProtectOurFreedom

DANGER!!

I suggest to add a sarcasm tag to your statement. It comes across as though you meant it 100%.


9 posted on 10/25/2010 12:52:51 PM PDT by SatinDoll (NO FOREIGN NATIONALS AS OUR PRESIDENT!)
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To: Spok

I liked this pithy comment from the comments section:

“Once again that ridiculous logic about what it COSTS the government not to raise our taxes. And here I sit in my humble home, fretting every day about what it’s costing me to NOT rob the local Wells Fargo branch, or First National on Third and Main.”


10 posted on 10/25/2010 12:53:59 PM PDT by KansasGirl (No more taxpayer money to National Progressive Radio (NPR)!!)
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To: KansasGirl

If you think foreclosures and real estate is bad now, that’s nothing in comparison to what it’s going to be, if they eliminate the mortgage deduction.

A lot of people can only afford to pay their morgage, because they get a break on taxes, and bought their homes with that calculation. Eliminating the tax deduction is equivalent to almost doubling your house payment. (Say your house payment is $10,000, but but because it’s deductable, you only pay $6,000 out of your pocket, if you pay 30% federal and 10% state income taxes. So you budgeted $6,000, now all of a sudden you have to pay $10,000!)

Not to mention that who in their right mind is going to buy a house or can afford to buy a house if it’s not tax deductable — the great depression is nothing, in comparison to the depression we are going to see.

And as for eliminating child tax credit, and deductability of health insurance — that’s another major tax increase.

All this should really motivate people to get out and vote, to stop the Dems uncontrolled spending and taxing agenda.


11 posted on 10/25/2010 12:54:16 PM PDT by SmartInsight (Bad officials are elected by good citizens who do not vote. ~ G. J. Nathan)
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To: KansasGirl
If the New GOP Congress can't cut spending, we are doomed and it won't matter what the tax rate is or what is deductible.
12 posted on 10/25/2010 12:54:21 PM PDT by April Lexington (Study the Constitution so you know what they are taking away!)
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To: Jim Robinson

This road leads to armed insurrection...........


13 posted on 10/25/2010 12:54:50 PM PDT by Red Badger (WOULD SOMEBODY PLEASE GIVE MEGHAN MCCAIN A BOX OF KRISPY KREMES SO SHE'LL SHUT THE HELL UP?!)
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To: Spok

You mean you don’t think everything belongs to the FedGov and is on loan to us?

You’ll be scheduled for a re-education camp soon.


14 posted on 10/25/2010 12:54:55 PM PDT by nascarnation
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To: KansasGirl
Commission of Marxists commie pukes.
15 posted on 10/25/2010 12:55:42 PM PDT by boomop1
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To: KansasGirl

Uncle Sam Digging a Hole of Debt

http://www.youtube.com/watch?v=poLFhsCjfe4


16 posted on 10/25/2010 1:07:49 PM PDT by SmartInsight (Bad officials are elected by good citizens who do not vote. ~ G. J. Nathan)
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To: KansasGirl

You are forgetting that they use some of that money to provide cell phones to the “poor”, to provide both food stamps and free meals at school for many families, free health care for those who “cannot afford it”, housing “subsidies” for those too lazy to work to pay their rent, set some of it aside for later to use for the bloated defined benefit pensions of bureaucrats and so-called “public servants” at all levels, send a bunch of it to the U.N. to help countries where the “leaders” keep the money and let their people starve and live in tragic circumstances, they use part of it to do studies on stupid and obvious subjects and save near-exstinct insects in a quest to perpetuate liberal higher education, etc. We are seen by the Rats as simply a spigot for cash to fund their liberal agendas. What are they going to do when no one is left to fund them?


17 posted on 10/25/2010 1:08:28 PM PDT by NEMDF
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To: KansasGirl

There’s still a chance we can nail a Hail Mary if we can get Raese, Kirk, and/or O’Donnell elected - they’ll be seated immediately in the Senate and give us some buffer room to maintain a filibuster.

Make sure to donate to their campaigns, give it some prayer, and we’ll see what happens.


18 posted on 10/25/2010 1:09:06 PM PDT by 1cewolf (Duty, honor, excellence.)
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To: KansasGirl
Let's not get too worked up about this. November 3 these people become totally irrelevant.
19 posted on 10/25/2010 1:27:27 PM PDT by colorado tanker
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To: KansasGirl
(donning flame resistant underwear)

We would be far better off to eliminate the mortgage interest deduction, and offset that with reductions in overall capital gains taxes.

The mortgage interest deduction basically says "The government is in favor of biasing investment into residential housing stock while penalizing other job-creating investments...."

20 posted on 10/25/2010 1:28:04 PM PDT by Notary Sojac ("Goldman Sachs" is to "US economy" as "lamprey" is to "lake trout")
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