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
Florida Republicans Choose Unregulated Murder Weapons Over Children’s LivesI keep drilling this to everyone who discusses this shooting. Republicans value ownership of unregulated murder weapons over children's lives. So much so that they voted along party lines with Stoneman Douglas students watching they voted to decline debate on ...
TDG2112
3 hours, 19 minutes ago
Views: 52 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Weekend Box Office: ‘Black Panther’ Bounds to Record-Shattering $218M-Plus Bow In a defining moment for Hollywood, Disney and Marvel Studios' Black Panther exploded at the Presidents Day box office, bounding to a record-shattering estimate of $192 million for the three-day weekend and a projected $218 million-plus for the four-day ...
Thanos
2 days, 9 hours ago
Views: 295 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Brandi Carlile - the Joke (Official Video) From the album "By The Way, I Forgive You" available now. elektrar.ec Directed by Danny Clinch Produced by Lindha Narvaez for MILKT Choreography by Peter Leung Ballet sequence filmed by Middle Table Productions Connect with Brandi: brandicarlile.com facebook.com @brandicarlile ...
Thanos
3 days, 4 hours ago
Views: 329 • Comments: 0 • Rating: 1
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
School Shooter Nikolas Cruz Belonged to White Supremacist GroupThis my surprised face.... BREAKING: Nikolas Cruz, alleged perpetrator in the deadly school shooting in Parkland, Florida, was associated with white supremacist group Republic of Florida & participated in the group’s training exercises, according to the group’s leader. More info: ...
Scottish Dragon
5 days, 13 hours ago
Views: 530 • Comments: 2 • Rating: 1
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Your Medicine Cabinet Knows What AIls Youblog.timesunion.com HOFFMAN FILESYour medicine cabinet knows what ails you.By Rob Hoffman on February 15, 2018 at 5:27 AM1We all fancy ourselves experts when it comes to the human condition. We see our fellow human beings as open books, and we ...
rhoffman
5 days, 15 hours ago
Views: 528 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 1
Comments: 0
: 1
A.G. Schneiderman Files Civil Rights Lawsuit Against the Weinstein Companies, Harvey Weinstein, and Robert Weinstein NEW YORK – New York Attorney General Eric T. Schneiderman today filed suit against The Weinstein Company (“TWC”), Harvey Weinstein, and Robert Weinstein for egregious violations of New York’s civil rights, human rights, and business laws. The suit, filed ...
Thanos
1 week, 2 days ago
Views: 1,174 • Comments: 0 • Rating: 0
Tweets: 5 • Share to Facebook
Shares: 2
Comments: 0
: 2
Portugal. The Man - Keep on (Official Video) Portugal. The Man - Keep On Video conceptualized, created and directed by Paulin RoguesFollow Paulin at instagram.com Catch Portugal. The Man on tour:portugaltheman.com WOODSTOCK available now!atlantic.lnk.to Follow Portugal. The ManWebsite: portugaltheman.comFB: facebook.com IG: instagram.comTW: @portugalthemanSC: SoundCloudYT: youtube.comTumblr: portugaltheman.tumblr.com ...
Thanos
1 week, 3 days ago
Views: 1,294 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
Shares: 0
Comments: 0
: 0
Marvel’s Jessica Jones - Season 2 Jessica Jones is back as New York City’s tough-as-nails private investigator. Although this time, the case is even more personal than ever before. Fueled by a myriad of questions and lies, she will do whatever it takes to uncover ...
Thanos
1 week, 3 days ago
Views: 1,146 • Comments: 1 • Rating: 2
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Deadpool 2 Teaser Trailer - Red Band (2018) Ryan Reynolds, Josh Brolin The Merc with a Mouth takes a pop at Cable, Toy Story and Justice League in this teaser for the upcoming Deadpool sequel. Watch more entertainment and game trailers here!YouTube Watch the latest from IGN here!YouTube ------------------------------­----Follow IGN for ...
Thanos
1 week, 3 days ago
Views: 1,151 • Comments: 1 • Rating: 1
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Poll: Number of Conservative-Leaning States Drops to 39 (CN) – The number of conservative-leaning states has dropped from 44 to 39, according to a new Gallup poll released Wednesday. The survey, conducted over a number of polls taken throughout the year, found that 35 percent of Americans ...
Thanos
1 week, 5 days ago
Views: 1,251 • Comments: 0 • Rating: 3
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0