The Weekend Pundit posts about government looking at killing the mortgage interest deduction on personal taxes. Personally, I don't have a problem with this per se.
We haven't been able to deduct our interest for 20 years. Only the first 2 years did we get deductions, since then we have had absolutely no deductions; nada, zilch, zippo (oh, except that $90 credit we got for installing new doors last year - woohoo, we are on easy street now). We have never, ever, taken into account tax implications when buying something (or at least not positive implications). And if you talk to money experts, I'll bet they tell you that you shouldn't count on the deduction as part of what will pay for your home.
As I recall, way back when, we used to also get to deduct interest on credit cards. When that was taken away, there was much gnashing of teeth and wailing that it would kill the credit card industry. Hmm, seems the credit card industry has done okay (not from us, since we pay off every month).
As far as I am concerned, the tax code should be simplified, streamlined and leaned out - and deductions should be done away with (okay, I can see deductions for the amount of people in the family - but that is it).
However, this does seem to be just a ploy on how to raise taxes without technically raising taxes (after all, they just ended a deduction) - that is what I do have a problem with.
yeah our government does this too. it's the sneakiness and dishonesty i don't like. if you have to raise taxes, you have to raise taxes but don't try and hide it, it just shows the lack of respect and the belief that the population is so stupid they won't recognise it for what it is.
plus, it seems to me when they hide it in the form of other things it's always those in the less well paid jobs that get the worst of it.
Posted by: bod | June 18, 2010 at 12:56 AM