It's Carter all over again--proposal to cap mortgage interest deduction at 28%!

Discussion in 'Politics' started by oreo, Mar 3, 2009.

  1. oreo
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    oreo Gold Member Supporting Member

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    So those of you that voted for President Obama really thought you were safe from higher taxes, didn't you? After all, you weren't in the top 5% of the evil wealthy in this country--that will be paying for all these new entitlements. You were also promised a tax break if you made under 250K per year. Remember all those campaign promises?

    Well--the hope & change has just turned into shock & UH!

    There is a proposal that is sure to pass, since democrats are a majority in all houses, to cap your mortgage interest deduction at 28%. Currently, if you are a homeowner you have been able to deduct 100% of your mortgage interest. This of course, results in a huge tax hike to the middle & lower income class. Jimmy Carter did the exact same thing during his term of the Great Recession--while of course campaigning on the premise that he didn't raise income taxes on the lower & middle class. Therefore, the campaign promises are kept--they just snuck in your back door & nailed you to the wall with higher taxes.

    Also, after listening to the news tonight--our newly elected President has no problem with signing his new budget into law with 410 BILLION in wasteful earmarks & pork barrel spending. His excuse--well these were in the budget last year & they didn't pass.

    To add to all of this--our electricity rates will be skyrocketing. President Obama's proposal to cap carbon emmissions in his war on global warming--that (he stated one year ago would be pushed onto the consumers causing prices to skyrocket). That's in the works now too. Notice what's NOT in the stimulus bill? There is NO money for nuclear power plants, & or money to drill for our own oil & natural gas.

    There is no longer any doubt in my mind. This administration is Jimmy Carter all over again. Barack Obama has no problem with raising taxes in the worst economy we have seen since Jimmy Carter. In fact, so far--they are a carbon copy of one another. All we need now--is mile long lines at the gas stations, & I swear I'll think I am back in the late 1970's.
     
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    Last edited: Mar 3, 2009
  2. Angel Heart
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    Angel Heart Conservative Hippie

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    Bend over... We're all going to get fucked.
     
  3. DiamondDave
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    I would agree to get rid of mortgage interest deductions

    IF

    We would go to a flat tax with the elimination of all loopholes

    But we won't see that happen..

    This action by Obama and the DEMs is a way to raise taxable income (I.E. raise taxes) without SAYING they are raising taxes... typical leftist underhanded ploy
     
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  4. oreo
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    oreo Gold Member Supporting Member

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    Yep--they would never do that. A fair flat tax--then they couldn't campaign on the rich vs. the poor. It's the old bait & switch routine. Promises lower income taxes ($12.00) a week in the old pay-check but jerk out the deductions on ones income tax return. he.he.he.

    To the rest of this nation--the middle & lower income people--they're partying with your money too--LIKE IT'S 1929!

    The only difference in this democrat congress--it used to be tax & spend--now it's spend & tax later.
     
    Last edited: Mar 4, 2009
  5. rayboyusmc
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    rayboyusmc Senior Member

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  6. oreo
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    oreo Gold Member Supporting Member

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  7. rayboyusmc
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    rayboyusmc Senior Member

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    How about reading the article, Oreo?

     
  8. auditor0007
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    auditor0007 Gold Member

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    I've been preaching this for a long time. One flat tax rate for all. Everyone gets the standard deduction and personal exemptions, then one flat rate for everyone. In truth, the mortgage deduction really only helps those who buy bigger homes. When you consider how low interest rates are currently, the mortgage interest deduction for many doesn't even come into play because the standard deduction more than covers this.

    The worst thing about it is that having this deduction allowed many people to buy bigger homes than could normally afford, which is part of the problem we are facing now. Not only did we build too many homes, but so much that was built were homes bigger than most could afford.
     
  9. auditor0007
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    Okay, which is it? The way Oreo worded it, it sounded as if you could only write off 28% of the interest on your mortgage. What this says is something completely different, however, I'm still confused. Does this mean that people will only be able to write off up to 28% of their income, or does it mean they can only write off whatever amount that will get them to the 28% tax bracket, which would be a bit like the AMT?
     
  10. slackjawed
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    quote:
    Yep--they would never do that. A fair flat tax--then they couldn't campaign on the rich vs. the poor. It's the old bait & switch routine. Promises lower income taxes ($12.00) a week in the old pay-check but jerk out the deductions on ones income tax return. he.he.he.


    My understanding based on conversations with my accountant friend is that the 12 bucks a week extra in your paycheck is a "tax credit". That is what Pres. O. called it, and apparantly that means that taxes have not actually been reduced, only the withholding has been reduced. I was told by an accountant friend to refile a w4 to withold at a higher rate, otherwise I would owe more taxes than I had paid at the end of the year.
    Now, this might not apply to everyone, if your paycheck is your only income and you got a refund last year, you probobly will this year too.
    Any tax professionals on here? We could all use clarification on a confusing subject.
    Too bad it takes a "professional" to decode our tax system..........
     

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