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Anyone who thinks that his plan will cut taxes with no consequences is living in a fool's paradise. It won't happen. What will the cap on mortgage deductions do to an already struggling housing market? And will the cap on deductions make his "tax cut" a back-door tax increase? Why aren''t you guys asking Romney these questions? His plan is so vague that I wonder what the impact will be on the middle-class? His silence on this speaks volumes.
And if you re-read the original question, I put in the phrase " if his tax plan is passed".
Again, this is about Romney's tax plan, not Obamas, feel free to start another thread on that topic.
Do I need to type slower? The struggling housing market, of which I am well aware, will not be impacted by limits on mortgage interest deductions for those in the upper end of the housing market! Nor will it affect the $150-$600,000 homebuyers. It is a plan to CAP DEDUCTIONS on people who earn the big bucks. If you make $80,000 and have a mortgage of over $500,000, something is seriously wrong.
Unless you own a home, have kids, have a student loan you're paying off. But if you're sinlge and file a 1040EZ every year, then, yeah, you could say that.
Even those of us who own homes, take a deduction for loan interest, property taxes, state and/or local income taxes etc can support Romney and his overall tax plan.
Lower rates with fewer or no deductions is fine with me.
Frankly, I'd love to see us work our way towards more of a flat tax system. Perhaps something like two or three tax brackets with no deductions, just personal exemptions.
Do you understand that if his tax plan is passed, you will lose part of your Mortgage, Child Care, Student Loan, etc. deductions?
In his statement about his tax plan, he mentioned that you will put those deductions in a bucket with a dollar cap on it.
Interesting thread. I can't use any of the deductions mentioned because we were smart enough to buy housing we could afford and pay it off, be a two parent family and not depend on others to raise our kids and we have never had student loans. He can throw them out completely for all I care.
As a Realtor, I was concerned about the mention of eliminating mortgage interest deductions. So I looked it up, specifically as this was discussed under Simpson-Bowles:
Romney repeatedly mentioned closing the tax loop-holes for those making "over $200,000". So trying to scare middle class homeowners who are able to deduct mortgage interest is simply a Dem scare tactic that is a bold faced lie.
As a mortgage broker I did the same thing, the other thing I personally like is that Romney wants to try to fix dodd Frank, that needs to happen as it goes way to far for what was needed.
You may lose some deductions, if you are a high income earner....however, if you have investment income, you won't be hit with taxes on that income....so it will encourage you to "grow" your money.
Most left thinking people don't invest and understand capital gains for what it is. It shouldn't be taxed the same way and no matter how much Romney or anyone explains it they won't get it. It's simple, Capital gains income involves risk and should be lower to encourage people to invest more. That is how the economy grows.
I am not sure what part is unclear. Mitt Romney said that he would cap the deductions at 25k. That cap is very easy to to hit, without being a "high income earner". If you live in a location, such as Jersey, heck you hit 25k just on your property, state, local taxes alone.
So there are a lot of folks that earn 6 figures, between 100-400k or so, that easily surpass over 25k in deductions, and they would be SCREWED with Romneys tax plan.
Even those of us who own homes, take a deduction for loan interest, property taxes, state and/or local income taxes etc can support Romney and his overall tax plan.
Lower rates with fewer or no deductions is fine with me.
Frankly, I'd love to see us work our way towards more of a flat tax system. Perhaps something like two or three tax brackets with no deductions, just personal exemptions.
Agreed, I personally would love a flat tax and do not understand why more people fight that idea. Kill the loopholes, deductions, and write offs, just set a tax based on my gross income and I will be happy. I am tired of the government using the tax code to get people to do what the government thinks is best for them.
Agreed, I personally would love a flat tax and do not understand why more people fight that idea. Kill the loopholes, deductions, and write offs, just set a tax based on my gross income and I will be happy. I am tired of the government using the tax code to get people to do what the government thinks is best for them.
+1. I am also for a flatter tax, and this a pathway to it.
I also get a kick out of the phrase "unfunded tax cuts". It is OUR money to begin with, not the governments. Here is a novel idea, LOWER SPENDING.
Do I need to type slower? The struggling housing market, of which I am well aware, will not be impacted by limits on mortgage interest deductions for those in the upper end of the housing market! Nor will it affect the $150-$600,000 homebuyers. It is a plan to CAP DEDUCTIONS on people who earn the big bucks. If you make $80,000 and have a mortgage of over $500,000, something is seriously wrong.
Where, exactly does it say the caps only pertain to people in the upper income bracket? That's not what he said last night.
And so, in terms of bringing down deductions, one way of doing that would be say everybody gets -- I'll pick a number -- $25,000 of deductions and credits, and you can decide which ones to use. Your home mortgage interest deduction, charity, child tax credit, and so forth, you can use those as part of filling that bucket, if you will, of deductions.
But your rate comes down and the burden also comes down on you for one more reason, and that is every middle-income taxpayer no longer will pay any tax on interest, dividends or capital gains. No tax on your savings. That makes life a lot easier.
OK, tell me how many middle class taxpayers are overburdened by Capital Gains taxes and savings interest taxes? What you do not realize, and what my point is, there will be a cap on tax deductions, and not just for the wealthy.
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