Repeal the federal deduction of the state and local tax deductions
Under the proposals, taxpayers would no longer be allowed to deduct the state and local taxes they pay on wage income, investment income, and property.
Former Senator John Breaux of Louisiana, who is the panel's vice chair, on CNBC Tuesday morning explained part of the panel's reasoning this way: "If people in California want to pay extra taxes to have their trash picked up, people in Texas shouldn't have to subsidize it."
Hey Johnny thats great ya know what though some one already addressed that issue. And in shock I have to give credit to my Congressmonster Katherine Harris for her leadership on the issue.
They got passed into law a deduction on the sales tax we pay if we don't have state income tax.
That is rather sizeable and a rather huge assault on the folks out there who are earning a living.
and lets forget we are talking about tax on INCOME... i.e money you make. When California takes that money from you that means you don't make it because it is GONE.
but the assault on joe six pack continues
The panel recommended lowering the mortgage interest cap, which is the amount of a loan on which home owners would receive a tax break for interest paid, from $1 million to the average regional housing price in the range of $227,000 to $412,000.
The deduction would be converted to a credit equal to 15 percent of interest paid on mortgages up to the interest cap. A credit is a dollar-for-dollar reduction of the taxes you owe, while a deduction only reduces your taxable income by a percentage equal to your top tax rate.
Generally speaking, the higher your mortgage loan and the higher your tax bracket, the more likely it is that you'll see less of a tax break than you would under the current system.
Ok lets back this up. -IF- the cap was flexible and adjusted with the average housing prices in the area I'd say go nuts. But in areas of South Florida and California people have woke up with their house going from 200k to 400k over night. Housing prices have spiked a insane amount over the last few years and are going to continue to do so.
What this means is once the average housing price shoots over 400K we will see less and less people able to afford good homes. People with average salaries will become more and more ghettoized.
This is a politically toxic as well as an economically destructive idea.
When you work for a company, your employer typically foots a large portion of your health-insurance premiums. That money, which is not reported on your W2, is tax-free to you.
The panel recommended capping the amount of tax-free money that may be used to pay for health insurance to $5,000 for single coverage or $11,500 for family coverage.
lets take the 5000 dollar figure first. I am assuming this is per annum on premiums.
so roughly 192 dollars. If your health care premiums paid by your employer are over that figure ( and quite a few companies I know of they are) this leaves the employer with two choices
Choice #1) pass on more cost to you (less money in your pay check)
Or Even BETTER
Choice #2) Eliminate health care for all employees.
Can a government lose/lose situation be more clear?
so less earning, thus less spending, thus less economic growth
more demand for government health care.
But the pain keeps on going.
Under their second proposal, which combines the income tax with a progressive consumption tax, there would be only three tax brackets: 15%, 25% and 30%.
a PROGRESSIVE consumption tax
what the #)(@#&*@*)&#(&*@#^&@#( is that?
they say that most tax payers would be in the 15% bracket... but with some of these assaults on the paycheck of the average worker i think it is because they are going to make them earn elss and be taxed more
This is not what the President sold me as part of his bill of goods at the Republican convention.
This is not what we elected him... to do
I got some torches and pitchforks I say we make a run for D.C