TV news is beginning too, at long last, offer some some specifics and comparison between the House and Senate tax reforms. The Senate will allow deduction of $1 million mortgage interest. Wow, that' one helova mortgage if the yearly payments run $1 million. Jeez, I'll bet that would pay the mortgage on the Empire State building. The House would only allow a half a million. Either amounts of mortgage interest will pay a mortgage of $20 million or so. That's one mighty fine house. I skim the "Mansions" section of the Journal on Fridays. They show some very fine houses there, but you can get into one of them for maybe $4 million. Which gives a mortgage payment like $200K. I'm thinking the only people paying $1 million mortgage interest are professionals in the real estate business, like president Trump used to be. In short, this is tax loophole for real estate wheeler dealers. Me, I would kill the mortgage interest deduction completely.
I paid mortgage interest on my house for years. It was like $10K a year. That was a nice deduction, until I finally paid off the mortgage, and the extra $12K standard deduction proposed in the tax reform will do me more good than a mortgage deduction, now that I don't have a mortgage anymore.
Another strange bit of tax reform information. Somebody, Congressional Budget Office perhaps, claims that killing the "individual mandate" (tax/fine on individuals who don't have health insurance) will SAVE $380 billion over ten years. How does killing a tax/fine save money?? Taxes raise money, killing them looses money. Perhaps "they" think huge numbers of people won't buy taxpayer subsidized health insurance without the tax/fine to encourage them, and thus the taxpayers won't have to pay to subsidize them? And "they" get their numbers from where? And we believe them. Right.
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