Tuesday, September 1, 2009

More from the Congressional Budget Office

Just so you know, aside from removing or lowering the mortgage interest deduction; here are a few more suggestions from the CBO:
1. Get rid of all write offs for local taxes, including property taxes.
2. A 15% cap on the total of your itemized deductions - remember that includes charitable contributions, medical expenses and casualty losses.
3. Revert to the capital gains rules prior to 1987. Instead of taxing long term capital gains at 15% as the current code does now - it would revert to paying taxes on 55% of the gain at the individual person's rate.

All of this will cost the individual more out of pocket for expenses, less charitable contributions, more government expense to cover programs previously funded privately, more distress in the real estate markets, less incentive to buy homes, less vested interest in your neighborhoods and communities and of course.... more taxes.

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