Wednesday, December 5, 2012

While President Seeks Higher Rates for the Rich, There's No Talk of Other Ways to Reform Taxation

   While the President fixates on marginal tax rates in his bid to make the rich pay "their fair share",  there is a body of evidence the rest of the tax code is so loaded with special treats, that the rate hike is just catnip for the "middle class" that just reelected Mr. Obama.
    The home mortgage interest deduction is not used as much by those with lower cost housing, as it may or may not provide much more than the standard short form deduction.
     For high end home buyers, the deduction is very advantageous, hence the notion deductions should be more the focus and that a rate increase will do little to raise money from people well versed in avoiding taxes.
      The middle class and poor are being fooled by the debate over rates. The way taxes are levied by all levels of government creates a far more complex and vexing situation than the President lets on with his very simplistic yearnings.

Mortgage deduction is popular, but few claim it


Anonymous said...

I don't know what you consider high end homes but these days most of them are paid for with cash. If you are talking about Mc-mansions then you have a point, but then you are back to talking about the "middle class".

Million dollar home buyers can always choose to distribute some cash equity to themselves by taking out a tax deductible loan using the business that provides the income for said home.

We don't have a revenue problem we have a spending problem.

? said...

How about ending all the wasted money on weapons of mass destruction? We worried about so hard a few years ago and now never question building more. If just kept 20 of the big bombs we would be more then safe.

Anonymous said...

Mayor you have let MCM bend your ear too much. While it is true that the government gets revenue from the unwashed masses in other ways besides income tax, they get the rich the same way. I was just making the point about the 100k property taxes the speedway has to pay. That is more than any 20 or 40 middle class homeowners pay together.

Anonymous said...

People who bought a decent house in this area, a house where they can afford with their income and don't have enough tax deductions to idomize are getting punished by not be able to deduct the mortgage interest as well as caritive giving, even as was yesterday to read in WDT account for 19 % of the donations.

This system is rigged for the reach and the unresponsible who but to big houses with to big mortgages they could not afford in the first place and counting in on the deduction.

NY21inMD said...

The Republicans have cited limiting tax deductions as a way to raise revenue without raising tax rates. The problem is they have not identified which deductions, such as mortgage or charity, thus I'm not sure this counts as a discussion, or talk, of tax reform. The President has stated that he will consider lowering tax rates again in the context of comprehensive tax reform, but it will have to wait until after dealing with the fiscal cliff for which rate hikes are necessary.

Anonymous said...

Ummm...What happened to the discussion about the 15% long term capital gains tax? That's where the REAL $$$ is. That's how Mitt Romney made $20,000,000 last year while running for President, and paid a 12% rate or how guys on Wall Street make millions and the get paid in stock options, wait a year, and get a 15% (or lower with deductions) rate as opposed to the current 35% rate.

Could it be that both major parties took so much campaign cash from Wall Street that they aren't going to correct this problem? BTW: It WAS in the Simpson-Bowles Report.

Anonymous said...

As usual communist in Merry land has his head up Obama's a$$. Obama has also stated that he could close loopholes instead of raising taxes. But has no specifics. At one time he wanted to close the charity deduction until he realized all his supporters work at these charities for big paychecks.

And now he makes an excuse for Obama claiming he is open to lowering rates in conjunction with comprehensive tax reform. but no specifics like he requires from republicans. Such a hypocrite.

Anonymous said...

NY21whereever, the problem with your Donkeys is they have not identified ANYTHING since they've held power. They haven't even proposed a budget. So shut the hell up about specifics regarding tax deductions. You're a parisan idiot.