"Kenny H" <[EMAIL PROTECTED]> wrote: > > *also trying to rewrite the tax code and screw people out of their > mortgage deduction
And who is getting screwed out of thier mortgage deduction? Under the proposal, the average home owner will maintian their full deductiblity. And those who are unable to deduct it now, because they dont save enough by itemizing will be able to deduct it. Who will lose part of their deduction? The upper third or so on the wealth scale. You seem overly concerned for these poor souls. First, they will retain dudutability up to about the average price home regionally. Thus in California, those with a million dollar home, would, under the proposal, be only be able deduct the mortgage interest equivalent to about a $400-500,000 home. And yet, in balance, a lot of these taax payers are not currently able to deduct for such, because at their incomes the Alternative Minimum Tax (AMT) kicks in. But under the proposal, AMT will be killed, thus the upper third or tax payers trade part of their mortgage deduction for elimination of the onerous AMT. So don't cry too hard for these upper 1/3 of taxpayers who will be affected. (Which seems odd for you -- to cry for such (mostly Republicans), but I guess its just compassion bubbling out for all of God's creatures.) Their taxes will be pretty much uneffected as the AMT "gains" will balance out the partial mortgage deducability loss. And the lower 2/3s of tax payers will be generally uneffected -- or will actually gain -- by being able to deduct mortgage interest when they can't now. And the overall effect will be to make housing more affordable. A good thing, yes? What is interesting is your implication that mortgage interest deductions is an entitlement. It is a poor policy economically, having been a huge bonanza of a tax shelter for the rich and has contributed to current housing being out of reach for 85% of potential buyers. An effect will be that less money will be sunk into fancy show-off houses and more into capital investments which will raise productivity and wage rates for all. A good thing, yes? ------------------------ Yahoo! Groups Sponsor --------------------~--> Get fast access to your favorite Yahoo! Groups. Make Yahoo! your home page http://us.click.yahoo.com/dpRU5A/wUILAA/yQLSAA/JjtolB/TM --------------------------------------------------------------------~-> To subscribe, send a message to: [EMAIL PROTECTED] Or go to: http://groups.yahoo.com/group/FairfieldLife/ and click 'Join This Group!' Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/FairfieldLife/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
