Tax TimePosted on Thursday, February 26th, 2009 at 11:36pm.
The tax increases would raise an estimated $318 billion over 10 years by reducing the value of such longstanding deductions as mortgage interest and charitable contributions for people in the highest tax brackets. Households paying income taxes at the 33% and 35% rates can currently claim deductions at those rates. Under the Obama proposal, they could deduct only 28% of the value of those payments.There are several other proposals in here worth discussing. The WSJ already has a whole page devoted to the new budget.
The changes would be phased in gradually over the next few years. For the 2009 tax year, the 33% tax bracket starts with couples with taxable earnings of $208,850, when adjusted for personal exemptions and various deductible expenses. A taxpayer in the top bracket paying $1,000 of mortgage interest, for example, would see a tax break worth $350 reduced to $280.
Your blog author is otherwise occupied at this time, so this post launches a new Open Forum to deal strictly with the tax issue and potential impacts on real estate, particularly locally.
Challenge yourself to limit the politics and grandstanding and keep the discussion on economics and RE. Thanks.
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