While national problems rarely affect the Real Bay Area, it’s important that the brilliant people of Silicon Valley come up with solutions. After all, solving difficult challenges is part of what makes the RBA so Special. Are you up for it?
By ANDREW TAYLOR, Associated Press – Thu Nov 11, 4:17 pm ET
WASHINGTON – Voters who demanded Washington rein in the nation’s spiraling debt are getting a message from President Barack Obama and leaders of his deficit commission: It’ll hurt.
A proposal released Wednesday by the bipartisan leaders of the commission suggested cuts to Social Security benefits, deep reductions in federal spending and higher taxes for millions of Americans to stem the flood of red ink that they say threatens the nation’s very future. The popular child tax credit and mortgage interest deduction would be eliminated.
Interest groups on the right and the left squealed, predictably, about the plan, which would cut total deficits by as much as $4 trillion over the next decade — much of it from programs long considered all but sacred.
The full commission has yet to make its recommendations, and the chairmen acknowledged their plan was so controversial that it’s dead on arrival. But they said putting it forth would prompt a more realistic national debate about what it will take to solve the nation’s fiscal woes.
Ah, some actual proposals to balance the nation’s budget! Cut Social Security! Chop Federal Spending! Raise taxes for everyone, including big business! Eliminate loopholes and special-interest giveaways! Bye-bye, child tax credit! No more mortgage interest deduc– HEY WAIT A MINUTE!
We are far better off building 1 or 2 fewer Predator Drones a year than eliminating the mortgage interest deduction! The mortgage interest deduction is untouchable. It is a sacred trust between our government, the construction industry and NAR that no matter how many jobs are shipped overseas, our economy will always be kept running by selling houses to each other. Eliminate the mortgage interest deduction? What a stupid, short-sighted, un-American idea!
Cut the break to half a million instead of a one million dollar mortgage? Unacceptable. Try finding a house in the Real Bay Area for half a million. That’s locale discrimination. RBA residents already pay for that when trying to apply for college financial aid.
Calvin Johnson, a tax professor at the University of Texas, said that only those in the top third of wage earners even itemized their deductions, meaning that two-thirds of taxpayers weren’t eligible for the break.
“No one can make a serious intellectual argument in favor of the mortgage interest deduction,” he said. “Why should the government subsidize homeowners rather than renters? The only thing it’s good for is middle-class votes.”
Oh no. It’s good for RBA property values, which means it’s good for college tuition. Isn’t everybody in the RBA itemizing their tax deductions, anyway?
Please share your thoughts on other ways to address the deficit but leave the mortgage interest deduction out of it! And the capital gains tax break on home sales is off the table, too!