According to the news this afternoon, you might want to keep and eye out for the tax code simplification that Mr. Bush is trying to send to congress.

One of the changes I noticed is that, if accepted, you will no longer be able to deduct the interest paid on your home loan.

A couple of congressman were shown, that said it did not have a chance of being approved. I hope not.

Dan,

I have read that too but it is slightly incorrect. The new tax code will do away with the estate tax and the alternate minimum tax and will take away the tax break for mortgage loans only on that portion above three hundred thousand dollars.

All three provisions will affect mainly upper level wage earners and not the average citizen.

Originally posted by Frogger
Dan,

I have read that too but it is slightly incorrect. The new tax code will do away with the estate tax and the alternate minimum tax and will take away the tax break for mortgage loans only on that portion above three hundred thousand dollars.

All three provisions will affect mainly upper level wage earners and not the average citizen.
==================================

I have not read it yet, the news said it would effect the middle class and not the upper class income bracket. Said it would effect primary and secondary dwellings, also did not mention above any set amount.

This could be one-sided news reporting, leaving out certain facts.

Whatever the final form the proposal takes it is scarey. It not only takes away the mortgage interest deduction but the property tax deduction as well. My mortgage on my vacation home is a tad over three hundred thousand so that won't affect me too much, but I pay over sixteen thousand a year in property taxes. Ouch!!!!


Bye the way, where are you in Florida? Hope Wilma didn't hit you too hard. Pompano Beach got hit like it was a ton of bricks.

If the reform lowered my taxes in other ways, then I can take losing the tax deduction. My suspicion is that it won't.

Frogger, I moved off Panama City, Beach about 4 years ago.
Now about 50 miles north. No storm damage.

What this is, is a recognition that taxes must be raised to control the deficit, since reducing spending would offend the all important lobbyists. It can't be called a tax increase, because that would be admitting that the tax decreases over the past few years have contributed to the deficit. This might lead people to ask whether our government officials acted wisely. So instead, it will be called a simplification, thus leading people to support it because everybody hates complicated tax forms. Ain't spin wonderful.

What this is, is a recognition that taxes must be raised to control the deficit, since reducing spending would offend the all important lobbyists. It can't be called a tax increase, because that would be admitting that the tax decreases over the past few years have contributed to the deficit. This might lead people to ask whether our government officials acted wisely. So instead, it will be called a simplification, thus leading people to support it because everybody hates complicated tax forms. Ain't spin wonderful.

Taxes aren't being raised, they are just being simplified such as eliminating the AMT, Estate Tax, double taxation of dividends and capital gains, and "Depreciation".

1st you lose your state tax deduction so that alone says it affects nearly everyone.

2nd if you have mortgage(s) you will get a 15% credit for the interest portion which will vary by location and by house value. It will range approximately from $200K to $400K. I won't go into the math so to put it in a nutshell, you will lose 2 of every 3 dollars you are now getting under the current system on your mortgage.

This will not affect the super rich because they are already paying zero taxes and will indeed even make them more richer because if they have low-end mortgages, they will get the 15% credit even though they paid no taxes.

You can put this raping of american tax payers directly on the shoulders of the republican party.

Originally posted by 00Elf
Taxes aren't being raised, they are just being simplified such as eliminating the AMT, Estate Tax, double taxation of dividends and capital gains, and "Depreciation".

Let me simplify the debate. More money will go to the government. That equals a tax increase.

posted by Lungdop Philing

You can put this raping of american tax payers directly on the shoulders of the republican party.

That's really not so. The head of the committee that came up with this new tax proposal is Senator Breaux, a Democrat from Louisiana. This tax proposal is more akin to something the Democrats would favor than the Republicans would.

It keeps the graduated tax rate and was even going to increase the highest rate until the committee discovered that doing away with state exemptions meant they would get enough money without raising the top rate.

The only blame the Republicans should take for this tax proposal is George Bush being too wishy washy to put forth his own tax proposal, the one he led his supporters to expect.

They need to ram the Fair Tax through already. I heard it all over talk radio when I lived in Atlanta, whatever happened to it? I believe I heard that Bush supported the proposal, even if he's to politically chickenshit to do more to get it passed.

The republicans control the white house, the senate and the house. This tax bill is on thier watch ... plain and simple.

Originally posted by Lungdop Philing
This will not affect the super rich because they are already paying zero taxes

Absolutely false:


The data show that the top 1 percent of taxpayers paid 34.3 percent of all federal income taxes in 2003, although they earned just 16.8 percent of the adjusted gross income. The top 5 percent of taxpayers paid more than half of all federal income taxes, the top 10 percent paid two-thirds, and the top half of taxpayers paid 96.5 percent — meaning that the bottom half paid just 3.5 percent.

national review (http://www.nationalreview.com/nrof_bartlett/bartlett200510130903.asp)

Originally posted by Imagineer
Let me simplify the debate. More money will go to the government. That equals a tax increase.

Exactly correct, why have a tax increase when you can simply eliminate deductions and accomplish the same thing?

Originally posted by Vilepagan
Exactly correct, why have a tax increase when you can simply eliminate deductions and accomplish the same thing?

Exactly -- Ronald Reagan taught us how to raise taxes by removing deductions. His 1986 tax plan was the largest tax increase in history.

What we need is to have the people that pay the most in taxes getting more of a break on them. We all pay the taxes and we do need easier forms. Reducing the paperwork is good for all.