SENATE BILL: Residential Taxation Reform Act of 2014 (Law'd)

[🐒Gods of Prosperity🔱🐲💸]

I agree that the deduction should be phased out, but I worry about removing it immediately and completely.  How will this affect people who are counting on it to be able to stay in their homes, or make their payments in other areas?  Is the capital gains exemption really a good substitute for that, to them?

[🐒Gods of Prosperity🔱🐲💸]

I agree that the deduction should be phased out, but I worry about removing it immediately and completely.  How will this affect people who are counting on it to be able to stay in their homes, or make their payments in other areas?  Is the capital gains exemption really a good substitute for that, to them?

How many people would actually be affected by this? Most people aren't savvy enough to increase their withholding if they're relying on the interest deduction.

I don't understand.  Who would need to increase their withholding? 

[🐒Gods of Prosperity🔱🐲💸]

I agree that the deduction should be phased out, but I worry about removing it immediately and completely.  How will this affect people who are counting on it to be able to stay in their homes, or make their payments in other areas?  Is the capital gains exemption really a good substitute for that, to them?

How many people would actually be affected by this? Most people aren't savvy enough to increase their withholding if they're relying on the interest deduction.

I don't understand.  Who would need to increase their withholding? 

Sorry, I meant decrease.

As in: the average dude relying on the interest deduction is going to get the money back at tax time, not over the course of the year.

But doesn't the mortgage interest deduction benefit a person for as many years as they are paying the mortgage?

[🐒Gods of Prosperity🔱🐲💸]

I'm not sure what you're arguing. Could you elaborate?

I mean I don't think that most people who are benefiting from the mortgage interest deduction would get the same benefit or anything close to it if it were switched to a capital gains deduction.  And so this change could be hard on people financially, since we are talking about something that affects people who have already made the decision to take on a mortgage.

[🐒Gods of Prosperity🔱🐲💸]

So does anyone have any thoughts about a delayed implementation scheme?

How about removing the mortgage interest deduction for future purchases, plus some sort of monetary limit?

[🐒Gods of Prosperity🔱🐲💸]

Let's try to consider some alternatives.

Here is a proposal for converting the mortgage interest deduction to a non-refundable tax credit:



It would direct the benefit more to those who most need it while reducing the overall cost of the deduction. I don't know though whether it would help with the problem of people taking on or not paying down their debt.

[🐒Gods of Prosperity🔱🐲💸]

If we do a cap, does it make more sense to do an annual cap or a total cap?

[🐒Gods of Prosperity🔱🐲💸]

I'll be putting forward an amendment shortly.

[🐒Gods of Prosperity🔱🐲💸]

amendment

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From my research, this change would cut the MID nearly/roughly in half in terms of tax expenditures  - by about $40-50 b - and so I propose putting most of the savings toward lowering a tax paid by everyone.

[🐒Gods of Prosperity🔱🐲💸]

I suggest the savings be reinvested into worker-owned enterprises, or cooperatives.

I was obviously joking. Can we implement the tax credit? Obviously we can not vindictively remove a deduction without giving The People relief somewhere.

I don't see anywhere that said deduction only applies to actual people, which would mean that employers are also going to get to take advantage. I would support such a deduction if it didn't also apply to employers, who are literally the last people on Earth that need tax relief.

Have you looked at our laws lately?  It's amazing we have any employers who are able to function at all.  If you dislike them so much, just put forward a bill banning employers altogether. Would save us all a lot of time and have the same effect.

[🐒Gods of Prosperity🔱🐲💸]

AYE

[🐒Gods of Prosperity🔱🐲💸]

I suggest the savings be reinvested into worker-owned enterprises, or cooperatives.

I was obviously joking. Can we implement the tax credit? Obviously we can not vindictively remove a deduction without giving The People relief somewhere.

I don't see anywhere that said deduction only applies to actual people, which would mean that employers are also going to get to take advantage. I would support such a deduction if it didn't also apply to employers, who are literally the last people on Earth that need tax relief.

Have you looked at our laws lately?  It's amazing we have any employers who are able to function at all.  If you dislike them so much, just put forward a bill banning employers altogether. Would save us all a lot of time and have the same effect.

Yes, because making sure that employers don't treat their employees like absolute crap is a recipe for the total collapse of society, amirite? In the event that employers wouldn't hire or whatever it wouldn't be a problem just to seize said industries outright and let the workers control the hiring themselves. No point in being held hostage by parasites.

If the workers do the hiring, then they become the employers, and they still have to abide by all that job-killing regulation.

[🐒Gods of Prosperity🔱🐲💸]

AYE

[🐒Gods of Prosperity🔱🐲💸]

NAY

[🐒Gods of Prosperity🔱🐲💸]

I voteded already.

[🐒Gods of Prosperity🔱🐲💸]

AYE