anita@drux3.UUCP (04/13/84)
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Did anyone hear the rumour (which he refused to deny yesterday) that
Reagan is considering doing away with the tax deduction for home mortgage
interest?! Does anyone want to buy my house?
Anitamark@cbosgd.UUCP (Mark Horton) (04/13/84)
The TV news treated this very briefly and with a lot of sensationalism. If you read the paper and get the whole story, you'll see what's really happening. Reagan supports a "flat tax rate" in the name of "simplified taxes". A national sales tax would be one way to do this (if it replaced the income tax, but when have you ever known the government to cancel a tax just because they have another new tax?) A flat tax rate would mean everyone pays x% of their income (or spending or something) in taxes. Thus, the concept of deductions goes out the window. I wouldn't worry about it. Unlike Usenet, the USA really IS a democracy. Reagan does not enact tax laws, Congress does that. And Congress is not about to do anything so suicidal as repealing a tax break that a huge percentage of the population (homeowners) depends upon heavily. Especially in an election year. Actually, this is probably a really good time to BUY a house. The buyers are probably so scared that the sellers might offer a better deal. Mark
bwm@ccieng2.UUCP ( Brad Miller) (04/15/84)
With a flat tax, all deductions would be repealed. Personally, I think the idea is better than the current system: it would simplify the tax code, cut down on the size of the IRS (and hence their power)..... Also if the flat tax were 10% (which is the current bill in congress) most folks would pay about the same as they do now WITH the interest deductions. Altzo, there is another bill that is rerearing its head in congress, which is a limit on the mortgage interest deduction. Basically, interest on the fist $X of mortgage is deductable, but above that it isn't (where X is about 100,000.00) This also has pros and cons...... Brad Miller -- ...[rlgvax, ritcv]!ccieng5!ccieng2!bwm
abc@brl-vgr.ARPA (Brint Cooper ) (04/16/84)
But don't you believe that a flat tax will ever come to pass. Once the mortgage interest deduction is repealed, all notion of simplified" tax forms will be forgotten. The President AND the Congress historically have used tax deductions to effect public policy and encourage the public to spend their money certain ways. No politician would ever give up such a lever!