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 Tweet

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.

Donate with
PayPal
Square Cash Shop at amazon
as an LGF Associate!
Recent PagesClick to refresh
Trump to Widow of Sgt. La David Johnson: ‘He Knew What he… The Atlantic's David A. Graham believes Trump used the controversy to distract reporters. Despite the criticism, Trump continued the discussion on Fox News Radio when he raised doubt about whether or not Obama called his chief of staff, John ...
Thanos
2 hours, 29 minutes ago
Views: 107 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
Shares: 0
Comments: 0
: 0
Nightmare at PDX In all, Cristina was held for 48 hours with the jail population, though she had committed no crime. She was treated poorly, and denied medical treatment when she requested it. She had no money in her jail phone account ...
Thanos
2 days, 22 hours ago
Views: 607 • Comments: 0 • Rating: 3
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
First-Ever Sex Discrimination Legal Network Is Ready to Defend Women in Trump’s America Shortly after the election, the attorneys and advocates who work at the National Women’s Law Center (NWLC) started having a conversation. It seemed that the incoming Trump administration was likely to move backward on enforcing civil rights, loosening regulations, ...
Birth Control Works
3 days, 20 hours ago
Views: 616 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Meet Rhiannon Giddens, Newly Minted MacArthur ‘Genius’ As a solo artist — and, before that, as a member of the Carolina Chocolate Drops — singer-songwriter Rhiannon Giddens has made a career out of revitalizing and invigorating decades' worth of music reflecting the African-American experience. That's meant ...
Thanos
1 week ago
Views: 1,010 • Comments: 0 • Rating: 1
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Lies About Black America Are ‘Central’ to Gun Ownership: A Reporter on What We Get Wrong About Gun Violence Lies that the GOP and Donald Trump promote all day long. “If you look at the neighborhoods where [gun violence] is most clustered,” Beckett said, it’s located in areas with high levels of poverty, low levels of education, and ...
Unshaken Defiance
1 week ago
Views: 1,542 • Comments: 0 • Rating: 1
Tweets: 63 • Share to Facebook
Shares: 2
Comments: 0
: 2
St. Vincent Performs ‘Los Ageless’ One of Stephen's very favorite singer-songwriters collaborates with three pairs of boots to perform a song off her new album "Masseduction". Subscribe To "The Late Show" Channel HERE: bit.lyFor more content from "The Late Show with Stephen Colbert", click ...
Thanos
1 week ago
Views: 1,235 • Comments: 0 • Rating: 1
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Star Wars: The Last Jedi Trailer (Official) Watch the new trailer for Star Wars: The Last Jedi and see it in theaters December 15. Get your tickets now: fandango.com Visit Star Wars at starwars.comSubscribe to Star Wars on YouTube at youtube.comLike Star Wars on Facebook at ...
Thanos
1 week ago
Views: 1,223 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
Shares: 0
Comments: 0
: 0
Brazil Branches of US-Based Church Target of Numerous Probes Church Based human trafficking and forced labor -- it's just religious freedom in action.../// When workers made a mistake, such as cutting a frame too short, she says they were screamed at and sometimes even hit to expunge the ...
Thanos
1 week, 1 day ago
Views: 1,123 • Comments: 0 • Rating: 2
Tweets: 9 • Share to Facebook
Shares: 0
Comments: 0
: 0
Missouri Woman Claims Religious Rights Violated by Abortion Law Those religious freedom laws conservatives are pressing through where ever they can might give fundamentalist xtians more grief than they bargained for. The law compels women to wait 72 hours between their initial visit and the procedure, view an ...
Thanos
1 week, 2 days ago
Views: 1,425 • Comments: 1 • Rating: 2
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Lawmakers Call for ‘Stealthing’ to Be Classified as Rape U.S. Reps. Carolyn Maloney (D-NY) and Ro Khanna (D-CA) announced on Wednesday that they would push lawmakers to have "stealthing," or nonconsensual condom removal, classified as rape. In a letter sent to the House Judiciary Committee, Maloney and Khanna ...
Birth Control Works
1 week, 3 days ago
Views: 1,067 • Comments: 0 • Rating: 1
Tweets: 1 • Share to Facebook
Shares: 0
Comments: 0
: 0