Wednesday, November 02, 2005
Tax Reform Proposal: Update
Less Deductions, Higher Liability
Well, I'm pushing through the tax commission report and it's chocked full of suggestions to repeal or curb many popular deductions. Funny thing is though, that the proposals eliminate valuable deductions like the mortgage interest deduction, state/local taxes, but does not offset my higher tax liability, I'd still be in the same tax bracket (although there would be fewer brackets).
I ask again, how does this make me better off?
WaPo has a great summary here.
Well, I'm pushing through the tax commission report and it's chocked full of suggestions to repeal or curb many popular deductions. Funny thing is though, that the proposals eliminate valuable deductions like the mortgage interest deduction, state/local taxes, but does not offset my higher tax liability, I'd still be in the same tax bracket (although there would be fewer brackets).
I ask again, how does this make me better off?
WaPo has a great summary here.
Comments:
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eliminate valuable deductions like the mortgage interest deduction, state/local taxes,
The biggest federal welfare program is the handout to home owners through these tax breaks.
This is socialism in action. The interesting thing is that these socialist programs benefit suburban Republican voters more than anyone else, so all of the sudden they're considered "valuable."
The biggest federal welfare program is the handout to home owners through these tax breaks.
This is socialism in action. The interesting thing is that these socialist programs benefit suburban Republican voters more than anyone else, so all of the sudden they're considered "valuable."
# posted by 
: 10:49 AM
: 10:49 AM
Valuable to me that is since I just purchased a home. I have no problem trading in this deduction for a slightly lower tax rate. I do have a problem with wrapping this in the mantel of reform when it may be a rather large tax increase.
As citizens, we base some of our long-term investments (home purchase, retirement, etc.) based on the nuances of the tax code.
Changing it would upset the apple cart and perhaps the valuation foundation on which many of our investments are based. If that is offset by generally lower tax rates then let's go for it, but I have a feeling here it's just an excuse to raise taxes...
Of course its too early in the game to tell what exactly the outcome will be and as we move forward I'll be better able to quantify the impact on my taxes of such reform...until then, based on my experience with these folks,the burden of proof is on them.
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As citizens, we base some of our long-term investments (home purchase, retirement, etc.) based on the nuances of the tax code.
Changing it would upset the apple cart and perhaps the valuation foundation on which many of our investments are based. If that is offset by generally lower tax rates then let's go for it, but I have a feeling here it's just an excuse to raise taxes...
Of course its too early in the game to tell what exactly the outcome will be and as we move forward I'll be better able to quantify the impact on my taxes of such reform...until then, based on my experience with these folks,the burden of proof is on them.
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