Pages

Jump to bottom

4 comments

1 lostlakehiker  Tue, Nov 27, 2012 8:48:12am

People who bought houses acted in reliance on the government's more-or-less promise that mortgage interest would be deductible. Same as people making retirement plans acted in reliance on another governmental more-or-less promise.

In neither case is the government bound by law to follow through. In both cases, changing the rules now would leave millions of people in situations that will go on for decades, playing out worse than they expected, and stuck with a situation they could not have planned for.

Perhaps there is no way around this kind of governmental default. But let's not play make-believe. Any adverse change to either of these provisions of the current law will be one that runs into the same "fairness objection".

In neither case does any serious player propose to make a change that works against the poor or the near poor, or even the next couple of rungs up. Social security benefit reductions would apply to the fairly well off and not to others, and canceling home mortgage interest deductions would not affect the mass of people who have too few deductions to itemize anyhow. It would not much affect those who have only barely enough deductions to itemize.

2 Randall Gross  Tue, Nov 27, 2012 9:42:56am

re: #1 lostlakehiker

You don't need to do either if you just raise the tax rates on the uber rich to a reasonable rate.

3 sagehen  Tue, Nov 27, 2012 11:48:54am

If they phase out the mortgage interest deduction -- 4 years phasing down for things other than primary residence, then ten years of 10%/yr to get rid of on primary residence...

that won't be a problem for any current homeowner. By that time, your payments are mostly principle.

It will reduce the asking price when you want to sell the place, but I see that as a feature, not a bug. Half the reason for the bubble (and a big part of why housing is so unaffordable now) is that low-income and middle-income people are subsidizing upper-income people's homes.

4 lawhawk  Tue, Nov 27, 2012 1:14:19pm

re: #1 lostlakehiker

Tax rates and all other aspects of the tax code are not immutable. There's no guarantee that rates will remain constant, that other aspects of the Code are never to change and that people will make decisions based on what is at hand. And as historical tax rate changes (among other things) have shown is that the only real constant is that the Code is constantly tinkered with.

There have been several iterations of the Code - 1954 and 1986 being major overhauls. In between there have been significant changes, including the 2001, 2003 and 2009 tax acts that changed rates and adjusted a whole host of tax issues (NOLs, capital gains, etc.).

Adjusting the MID could be done with minimal impact to middle class if you reduce its availability as a percentage of income. For instance, you could start out with a MID adjustment as follows: if you're in the 25% bracket, you'd get 100% of the MID; 90% if you're in the 28%; 80% if you're in the 33%; and 70% in the 35% bracket.

You could then reduce the percentages over time available to the high tax brackets.

Alternatively, one could give the AMT more teeth by essentially eliminating all deductions for high income earners, including on the MID and rolling it back into the basic tax code at a new bracket point (no separate calculations - one simply determines their income without the deductions/credits available to lower bracket taxpayers).


This page has been archived.
Comments are closed.

Jump to top

Create a PageThis is the LGF Pages posting bookmarklet. To use it, drag this button to your browser's bookmark bar, and title it 'LGF Pages' (or whatever you like). Then browse to a site you want to post, select some text on the page to use for a quote, click the bookmarklet, and the Pages posting window will appear with the title, text, and any embedded video or audio files already filled in, ready to go.
Or... you can just click this button to open the Pages posting window right away.
Last updated: 2016-01-01 10:29 am PST
LGF User's Guide RSS Feeds

Help support Little Green Footballs!

Subscribe now for ad-free access!Register and sign in to a free LGF account before subscribing, and your ad-free access will be automatically enabled.

Recent PagesClick to refresh
Ring of Fire: Five Myths About Pacific Rim, Earthquakes, Volcanoes and Faults John VidaleAlaska Dispatch News /The Washington PostMay 1, 2016 A tragic month along the tectonic subduction zones that surround the Pacific Rim has also been a spellbinding one for seismologists. A magnitude 6.2 quake on April 14 was followed ...
Cheechako
6 hours, 52 minutes ago
Views: 114 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
Shares: 0
Likes: 0
Comments: 0
: 0
Why the NRA Hates Smart GunsJon Stokes isn't a 'gun guy' but he understand this issue. He skillfully uses the "Assault Weapons" Ban Bill and Hillary Clinton supported in 1994 to make his case in the middle of the article, but I'm going to excerpt ...
Dark_Falcon
1 day, 8 hours ago
Views: 434 • Comments: 9 • Rating: 1
Tweets: 0 • Share to Facebook
Shares: 0
Likes: 0
Comments: 0
: 0
Daniel J. Berrigan, Defiant Priest Who Preached Pacifism, Dies at 94When I was younger I wasn't quite a full metal wingnut but I was close when it came to matters military; and during those days Father Berrigan was in the opposing camp. However even then I recognized that he was ...
Thanos
1 day, 11 hours ago
Views: 270 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
Shares: 0
Likes: 0
Comments: 0
: 0
Marcus Miller - Metropole Orkest - Edison Jazz/World Awards 2013 Eindhoven 2013 - Optreden van Marcus Miller en het Metropole Orkest tijdens de uitreiking van de Edison Jazz/World Awards 2013 in het Muziekcentrum Frits Philips. Het orkest staat onder leiding van Daniel Jamieson. Eindhoven 2013 - Performance of Marcus ...
Thanos
1 day, 14 hours ago
Views: 432 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
Shares: 0
Likes: 0
Comments: 0
: 0
Pop Goes the Digital Media Bubble Warning: this leads into the latest Mother Jones begathon, however there are salient facts regarding the state of journalism and digital advertising today before you get there. Look at it this way: A reporter doing even modestly original work ...
Thanos
1 day, 22 hours ago
Views: 549 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
Shares: 0
Likes: 0
Comments: 0
: 0
Nvidia GPU-Powered Autonomous Car Teaches Itself to See and Steer During the past nine months, an Nvidia engineering team built a self-driving car with one camera, one Drive-PX embedded computer and only 72 hours of training data. Nvidia published an academic preprint of the results of the DAVE2 project ...
Thanos
1 day, 23 hours ago
Views: 606 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
Shares: 0
Likes: 0
Comments: 0
: 0
How to Set Up Your Newsroom to Find Breaking News on Social Media | To cover news through social media right it takes a team and some tools. He recommended a three-person team to cover the key platforms on which reports and footage emerge: one person looking for material on Twitter, one on ...
Thanos
2 days, 1 hour ago
Views: 581 • Comments: 0 • Rating: 0
Tweets: 2 • Share to Facebook
Shares: 0
Likes: 0
Comments: 0
: 0
Trump Praises Putin in Interview With Far-Right Conspiracy Theorist Trump on the Michael Savage show. Donald Trump has made no secret of his admiration for Russian president Vladimir Putin, and the feeling seems to be mutual . So Trump naturally brought the subject up again in an interview ...
Thanos
2 days, 1 hour ago
Views: 567 • Comments: 1 • Rating: 1
Tweets: 5 • Share to Facebook
Shares: 0
Likes: 0
Comments: 0
: 0
The Racist Roots of a Way to Sell Homes Contracts for deed are making a comeback. They are increasingly being used by investment firms that have bought thousands of foreclosed homes and want to sell them to lower-income buyers “as is,” according to a recent report in The ...
Thanos
2 days, 2 hours ago
Views: 322 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
Shares: 0
Likes: 0
Comments: 0
: 0
Trump’s Calculated Misogyny The conservative media is still not quite behind Trump, this morning Dana Milbank, George Will, and Kathleen Parker all write opinion pieces that do not favor him. That will change, but you might as well take a look while ...
Thanos
2 days, 2 hours ago
Views: 598 • Comments: 1 • Rating: 0
Tweets: 3 • Share to Facebook
Shares: 0
Likes: 0
Comments: 0
: 0