Posted on 11/18/2014 8:53:03 PM PST by 2ndDivisionVet
Congress has voted to remove the child tax credit, the earned income tax credit and the mortgage interest deduction from the tax code starting with the 2014 fiscal year.
The move is almost assured to solidify the perception of the 113rd Congress of the United States as deeply disconnected from the struggles and desires of the populace it is supposed to serve.
The move, long championed by entitlement reform advocates like congressman Paul Ryan R-Wisconsin and Ted Cruz R-Texas, will cut entitlement payouts by a staggering 177 billion dollars. 54.33 billion dollars in savings will be realized from discontinuing the earned income tax credit, which generally pays those making less than 12 thousand dollars yearly large cash tax rebates far in excess of the actual tax they paid. 69.7 billion will be saved from the mortgage interest tax deduction, which critics say primarily favors top income earners. The elimination of the child tax credit, which critics say serves no fair purpose, will result in an additional 54 billion dollar savings.
A heavy burst of lobbying preceded the vote by several free market/libertarian groups, most notably ones funded by Koch Industries. Initial democratic opposition and reluctance to vote in favor of amending the tax code withered in the face of overwhelming support from the majority party, and several industry groups. Many Democratic caucus members fled their own party leader’s stance to vote in favor of the measure with the majority of Republicans, citing their recent defeat in midterm elections as an endorsement by the people of the Republican platform and agenda.
Congressional Republican leader Kevin McCarthy called the elimination of the entitlements a major victory for America. He pledged to use the savings to establish a new “Job Creator” stimulus for American businesses and corporations: the centerpiece of which would be to cut corporate america’s tax burden by up to 500 billion dollars annually.
Congressman Paul Ryan had nothing but effusive praise for McCarthy’s proposed corporate tax cut. “This is the great news America has been waiting for”, said congressman Ryan. “By placing more money in the hands of Job Creators we can grow and move this economy forward. The detractors will say that giving already wealthy people more doesnt spur the economy. They always do. The detractors will point out empirical evidence and data that they say proves their point. But we will continue to use the undeniable facts of our ideology to make this country great, and not rely on spurious nonsense like empiricism. With more money in their coffers corporations will be able to expand their business, hire new skilled workers and fix the economy that President Obama has ruined.”
Conservative Economists working for the Heritage Foundation predict up to 20% yearly growth (depending on data sets) to the American economy if the forthcoming “Job Creator” bill is passed. Economist Paul Horner, speaking on behalf of the foundation, said the Dow Jones stock index could easily surpass 25,000, leading to a massive creation of wealth for speculators when the new corporate tax breaks take effect.
“All it takes is for us to redirect the funds that once went toward wasteful entitlements and apply them toward the vital functions of our economy”, stated Horner. “The slumbering giants of capitalism will arise from their torpor and rain manna of capital fulfillment on the people from their Plutocratic heights. And that, my friends, is the new American Dream.”
Satire..... yes.
FINALLY!
The Earned Income Credit is the most fraud-ridden part of the tax code. The Mortgage Interest Deduction actually pays people for going in debt. The Child Tax Credit can be debated, but I’m ok with it, given this level of clean-up.
And I agree, ecomonic growth will go THROUGH THE ROOF, now that people have more incentive to actually work.
The mortgage interest deduction incentivices home ownership; if you want to see a world without that look at the Ferguson situation - people with nothing to lose, who will foul another nest when the area is destroyed.
Companies get all kinds of deductions from their income; as long as they do people should as well.
Meanwhile....the list of what the 'pubs were given the majority in DC to get done is quite long. One of them was to balance the budget by cutting spending, not by further impoverishing the middle class. What happens to their thought process once they get to DC?
“I call BS.”
Yeah, it is. But, speaking only for myself, I’m ok with it should it happen. A couple of years ago I refinanced. Now have 2.25% on a ten year note. So, my interest expense is not significant.
What are the odds of Obama signing such a bill?
A lot of people factor Obamacare into decisions, too.
mortgage interest is now an “entitlement”
No worries that so many homeowners took on the 30 year debt obligation based on the interest part being deductible, the 1% pays cash for real estate anyway
Boo Hoo so sad? Well then, run your businesses without me. I will have thousands less to spend.
The repercussions of this on the family budgets and economy will sink Ryan.
Good riddance
But he may be giving the democrats a hail Mary to claw their way back to the top
In my area housing is already collapsing because Americans have stopped breeding (and therefore have no need to tie themselves to 30 years of payments to an area that is already withering on the vine). New consructions are built to accomodate yuppies and their dogs (nobody else has any money), and it is hoped the illegals here will occupy the existing housing stock as Americans flee (they can rent them).
I believe the mortgage interest deduction is here to stay for a long time just as low interest rates are because the government desperately needs to get people into homes; the economy is built around it, and is collapsing with it de-stabilized.
It is getting harder and harder to tell satire from reality.
Satire, of course.
But, I am in favor of all of these.
We got rid of interest deductions for just about everything else. It should be eliminated because it distorts the market.
Folks like it because it makes homes “more affordable”.
If we didn’t have it, prices would come down and the homes would be “more affordable”.
This could only be accomplished over an extended time frame, like eliminating Social Security and other schemes.
Over time, I bet most folks would gladly trade the interest deduction for a ~40% lower home price.
I think you should have this removed.
It isn’t even satire. It’s simply fake.
Links?
Links to what?
You claim that this is an incorrect or satirical column, yet you offer me no proof to take to admin.
Hey, you posted it.
Can you provide anything at all that would show that any of these absolutely earth-shaking events actually have occurred?
Yeah, the article.
Yeah. The fake article.
Surely you can provide some other links to other sources for such gargantuan news, right?
And sites like “the National Report” don’t count. lol...
First proposed by Nixon, signed into law by Ford and increased under every administration since, without exception.
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