Interesting item on the advantage of being rich in the US from Karen Cole's Casey Reports.
Ed -------------------------------------------------------------------------------- Chuck Marr @ CBPP: Reforming Tax Deductions would improve Economic Efficiency and Raise needed revenue · "An affluent investment banker who has a $1 million mortgage and pays $40,000 in mortgage interest each year receives a housing subsidy of $14,000 annually. The banker pays 65 cents of every dollar of mortgage interest, and taxpayers pick up the remaining 35 cents. · By contrast, a typical middle-class family, such as a welder or a nurse making $60,000 and paying $10,000 a year in mortgage interest on a more modest home, receives a housing subsidy worth $1,500 annually. Here, the family pays 85 cents of every dollar of mortgage interest and taxpayers pick up just 15 cents." It's both inefficient and inequitable for taxpayers to pay 15 percent of the middle-class family's mortgage interest but one-third of the investment banker's. Both the bipartisan Bowles-Simpson commission and the bipartisan Rivlin-Domenici commission recognized this glaring design flaw and advanced reform proposals that improve efficiency and raise much-needed revenue. So has the President. Budget negotiators would be well served to put these proposals in the middle of the negotiating table." http://www.offthechartsblog.org/reforming-tax-deductions-would-improve-economic-efficiency-and-raise-needed-revenue/
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