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 ...
It doesn’t affect my point of view. We should all be able to determine on our own how much we can responsibly borrow, and if the guidelines are in place, that is factored into our decisions.
Someone is always going to think someone else borrows more money than they should or makes more money than they should.
If sound lending practices are in place, a person will only be able to borrow to a certain general level before the loan officer shakes their head and says “We cannot lend you that money.”
But we all know that went out the window (sound lending practices) beginning in 1977.
We’ll see if the Third Rail thingy still works .. even in the Obama era.. Prop 13 has survived for quite awhile..
Gang=Thug 8-}
I think we can agree to disagree, and there is a lot to agree on as well. Thanks for a civil discussion...
And of course there is the intended effect that the political class wants: fewer homeowners which in turn destabilizes communities and impedes the development of strong families.
Even more important than the impact upon the middle class taxpayers are the consequences (unintended?) to the middle class small businesses and their working class wage earners. Now I understand, every business is by Obama’s definition “miliionaires and billionaires”, but the reality is, there are a shitload of Mom and Pop, granite countertop and Kraftmaid kitchen cabinet installers already sucking wind and now they will be totally screwed. More bankruptcies, more layoffs, less not more tax revenue.
This is the same thing that Senator Mitchell did to his Maine small boat building constituents back in the early 1990s the last time they tried to stick it to the fat cats.
It has no chance of passage.
In fact, the Dems are totally screwing themselves and the pooch, IMO. They expect that Speaker Boehner will cave and capitulate to their Senatorial and Presidential pressure, and then he somehow be able to pivot 180 degrees and stare down and intimidate his GOP House colleagues into breaking their campaign pledges and commit political suicide.
Human beings on this planet don’t respond that way. You are perceived as either weak or strong. If you are perceived as strong you eat dinner, if you are weak you ARE dinner. If he caves to the Dems, he will cave to the GOP also, because they would have no reason to fear him.
He won’t cave, they won’t cave, and their will be no tax increases, period.
We can’t have elections often enough .. ;-)
You get Senators elected popularly and they go wild.. heck, half the siting Senators are certifiable, and at least a quarter of the House.
the only way to get their attention is flash mob ‘em.. or..
And also a huge subsidy for liberal enclaves where home prices are far above the average: Calif/NYC/Chicago/WashDC
I'm with you Notary, let's get rid of this!
Mortgage interest is income to the mortgagee. That income is taxed.
Why do you support multiple income taxation of the same funds?
There used to be a lot of fat to spread around, The grace Commission efforts confirmed that..
nowadays we ain’t got no fat, which is ironic as we are the fattest populace on the planet.. lol
but I degrease.. uhh digress..
It’s a gubamint living beyond its means providing ‘services’ it shouldn’t be providing that put us in this mess.. not just greedy bankers and investors and corrupt politicos..
Losing the mortgage deduction is “tax the rich”?
Congress and obama are BUSTED.
They are going after the middle class.
As if the rich worry about mortgages
So, if I understand you correctly, the homeowner should be taxed on that interest payment just as it was income, then the bank should be taxed on that interest received, like income.
Hmm, what is wrong with that picture? anything?
Kind of like taxing dividend checks, you like that as well, no doubt?
The mortgage interest deduction came in with the income tax around 1913. I’m sure it caused the housing bubble 90 years later. /s
You need better tax advice.
Mortgage interest is a business expense on rental property.
So are all maintenance costs you pay, such as HOA, yard work, etc
So is depreciation which you MUST take
You may be subject to a cap of $25K of “pasive losses” on your rental, and that may limit your total expenses but stil...jeez. Mortgage interest is a big deductible expense for landlords. I always pay my rental Jan mortgage on 30 Dec to get extra interest.
Get to an expert and maybe refile your taxes to take the appropriate deductions and expenses!
Aw, how cute!
Even conservatives love their government subsidies!
Dishonest reporting.
I am sick of hearing about “revenues”. It’s a load of crap.
It’s taxes frickin’ loons.
It also doesn’t broaden the tax base but actually broadens the number of areas where the government will reduce or eliminate tax exemptions and increases taxes in other areas.
50% of American will still be tax takers and a net drain on the actual tax producers.
Don't expect a response to that question.
Secondarily, Imagine what happens to rental prices if the landlord no longer has the interest to write off, pretty much will need to be doubled (the rent) to cover the costs.Or force landlords to liquidate, in either case, the tenant gets bounced.
So a million Jacks should take a pass on buying $400K houses
Let someone else buy them
That will sure make the sellers and builders happy and create more jobs, eh?
Instead of resenting Jack’s willingess to take on more debt because he can pay for it with a couple hundred extra dollars of income every month, ever think that this tax incentive may actually create a few jobs? More than might be created if Jack paid higher taxes instead?
I guess we may soon find out
The Dems do want to keep a few of their cherished tax credits, of course...
“To help pay for lower rates, the plan would reduce popular tax breaks for mortgage interest, health insurance, charitable giving and retirement savings. *Other tax breaks would be spared, including the $1,000-per-child tax credit and the earned income tax credit...”
http://www.dailymail.com/News/NationandWorld/201107201223
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