Wednesday, October 12, 2005

GOP Solution: Scrap Healthcare/ Mortgage Deduct

This is the pinnacle of compassionate conservativism, via the NY Times: Pres Bush's tax advisory commission indicated that it would not propose replacing the income tax with a national sales tax or a value-added tax but would recommend modifications in the popular tax deductions for mortgage interest and employer-provided health insurance. Taxpayers can now deduct all the interest on mortgage loans up to $1 million. How many of us regular homeowning non-millionaires would that effect if the mortgage interest tax deduction is scrapped? Under the current law, employers can deduct every penny they pay for health insurance for their workers, and the workers are not taxed on this benefit. Once the employer-provided health insurance tax deduction is scrapped, how many of our employers will turn around and charge us OUTRAGEOUS amounts for health benefits? So let's recap: At its last meeting in July, the commission agreed to recommend abolishing the alternative minimum tax for individual, a step that would cost the fedrl govt $1.2 trillion in lost revenue over 10 yrs. That is mainly what led to an examination of ways to modify the deductions for mortgage interest and health insurance, 2 of the largest tax breaks now available to individuals. Together, these 2 deductions will cost the Treasury about $250 billion this yr, w/ the benefits going disproportionately to the most affluent taxpayers. Nice going GOPers... take from the poor and give to the rich AGAIN. The days of serfdom are just around the corner for us, while this wk Lynne and The Big Dick are finishing up the paperwork on a $2.9 mill home.
Posted by Tina :: 12:33 AM :: 0 Comments:

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