Bush seeks to scrap deduction for state and local taxes.

[It's On A Slab]

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If you live in a state with high property taxes(as I do), get ready to pay through the nose.

http://www.washingtonpost.com/wp-dyn...2004Nov17.html

"Instead the administration plans to push major amendments that would shield interest, dividends and capitals gains from taxation, expand tax breaks for business investment and take other steps intended to simplify the system and encourage economic growth."

And who pays for this?

"To pay for them, the administration is considering eliminating the deduction of state and local taxes on federal income tax returns [U]and scrapping the business tax deduction for employer-provided health insurance."

[TexasBama]

41 cut the deductions for non-mortgage interest payments (car, credit card, etc.).

[Queasy1]

And thus the problem inherent with any attempt at tax-reform. Every deduction and tax-break has a multitude of individuals and special interests that will fight tooth and nail to keep them.

[TexasBama]

People paying property taxes or interest on revolving credit is a special interest comprised of about 90% of the taxpaying population.

[Queasy1]

Did I say that they were or were not entitled to a tax deduction? No. All I said was that tax reform is problematic because people will fight for every little different tax deduction in our overly-convuluted tax code. What cracks me up is when you see people fighting to keep tax penalties like the Marriage penalty and the 'Death Tax'.

Personally, I think the only meaningful tax reform will come if we scrap everything and move over to the Fair Tax Plan or another Income Tax Plan like a Flat Tax or just two tax brackets with minimal deductions.

[TexasBama]

Yes, the tax system is screwed up.

This move would affect a lot of people, i.e. voters.

Apparently, 43 is smart enough to wait until after the election, unlike his dad.

[jthomas666]

	Quote:
	http://www.washingtonpost.com/wp-dyn...2004Nov17.html "Instead the administration plans to push major amendments that would shield interest, dividends and capitals gains from taxation, expand tax breaks for business investment and take other steps intended to simplify the system and encourage economic growth." And who pays for this? "To pay for them, the administration is considering eliminating the deduction of state and local taxes on federal income tax returns and scrapping the business tax deduction for employer-provided health insurance."

Oh, good! All the problems with health care in this country, and they want to get rid of a major incentive for employer-provided health care. Who cares about the workers, anyway?

[bamabake]

	Quote:	jthomas666
	Oh, good! All the problems with health care in this country, and they want to get rid of a major incentive for employer-provided health care. Who cares about the workers, anyway?

Well If they did do this it should be paet of a total refoem and a gradual one.
I personally believe that most people should pull out the checkbook and pay for their own heath insurance. However the govt has so screwed up healthcare by nationalizing it that people cant. This move by itself seems harmful UNLESS it is offset somewhere else for the business owners.

[Bamaro]

	Quote:	Queasy1
	And thus the problem inherent with any attempt at tax-reform. Every deduction and tax-break has a multitude of individuals and special interests that will fight tooth and nail to keep them.

AMEN

[NYBamaFan]

I pay $8,500 per year in property taxes. If this passes, I will become a political activist...