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.

Recent PagesClick to refresh
Britain Irritated by US Intel Leaks Thanks Trump. Your administration is a hazard The U.K. government has expressed its displeasure at the U.S. over the leaking of information about the Manchester bombing to the media. “The British police have been very clear that they want ...
Unshaken Defiance
2 hours, 51 minutes ago
Views: 183 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Infowars Granted White House Press CredsIt appears as if Trump has granted official Press Credientials to that vomitorium of an opinion/con man site, Infowars: thinkprogress.org At least this administration is consistent. A Kakistocracy cannot be complete without the dumbest, stupidest information peddlers on the planet ...
Rocky-in-Connecticut
6 hours, 43 minutes ago
Views: 115 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
You Have One Last Chance to Repent, Sean Hannity….Help me force Sean Hannity to repent. If he doesn't, The Major will bring incredible the damage to Mr. Hannity using the new weapons of The Internet. I tried to warn you, Sean. You didn't listen then. If you choose ...
The Major
15 hours, 26 minutes ago
Views: 222 • Comments: 0 • Rating: 0
Tweets: 2 • Share to Facebook
Shares: 0
Comments: 0
: 0
Intelligence Alert: How to Sniff Out Fake Identities on Twitter @FlorenceOconne5 Lesson Learned for Twitter Users: Check who follow you closely. If it has a high following/follower count, it's probably fake. — TheMajor (@TheMajorsViews) May 24, 2017 Now that we know how they do it, it's time to ferret ...
The Major
16 hours, 5 minutes ago
Views: 240 • Comments: 0 • Rating: 0
Tweets: 2 • Share to Facebook
Shares: 0
Comments: 0
: 0
Doctors Argue That Female Genital Mutilation Is Protected Under First Amendment Two doctors in Detroit, along with one of their wives, are about to take the first religious defense of female genital mutilation to a US Federal court. The case stems from a FBI investigation into Dr. Jumana Nagarwala after ...
Birth Control Works
17 hours, 4 minutes ago
Views: 232 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Amanda Knox: How Prisons Use Cult Tactics to Brainwash Inmates Into Religion Katie McKibben and the Orange County Superior Court both agree on one thing: In July 2013, 25-year-old McKibben failed to remain sober while on home arrest for her third DUI. She had been struggling with alcoholism throughout her early ...
Birth Control Works
17 hours, 7 minutes ago
Views: 290 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Letters From Women Pleading for Abortion, Sent in 1917, Mirror Emails Sent Today In the early 1900s, desperate American women wrote letters to the founder of Planned Parenthood begging for help with unwanted pregnancies. A century later, they're sending eerily similar messages to an international abortion-by-mail service. "I'm in the family way ...
Birth Control Works
18 hours, 58 minutes ago
Views: 280 • Comments: 0 • Rating: 1
Tweets: 0 • Share to Facebook
Shares: 1
Comments: 0
: 1
Pregnant Women Are Being Arrested for Crimes They Didn’t Know They Committed Laurie was five months pregnant when she used methamphetamine. She'd previously been on anxiety medication, but her doctor switched her to an opiate when she told him she had history for drug addiction. She said the opiate made her ...
Birth Control Works
19 hours ago
Views: 4,575 • Comments: 0 • Rating: 1
Tweets: 0 • Share to Facebook
Shares: 14
Comments: 0
: 14
Manchester: Defiant and Proud Everybody reading this will have some connection to Manchester. Whether it's music you love (*waves at Charles*), football you enjoy, science you respect or that radical tradition you've read of, Manchester is a World City we all have some ...
Paul Canning
22 hours, 30 minutes ago
Views: 431 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
Shares: 1
Comments: 0
: 1
Inclusive Approaches to Preventing Violent Extremism - Carter Center Violent extremism fractures communities, fosters division, and exacerbates political conflicts. It knows no religious, national, or ethnic boundaries. Violent extremist movements continue to fuel the world’s most violent wars in Africa and the Middle East, and right-wing ethno-nationalist extremism ...
Birth Control Works
23 hours, 49 minutes ago
Views: 236 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 1
Comments: 0
: 1