Monday, October 31, 2005

Tax 'em Till They Turn Red - The Bush tax panel's plan to screw Democrats. By Daniel?Gross

Bush and congress plans massive tax changes

limit mortage deductions on 1st mortgage, to less than 300k
eliminate equity loans interest deduction
eliminate vacation home 2nd mortgages interest deductions
eliminate property tax deductions
eliminate state tax deductions.

the tacit benefit is a pseudo flat tax, actually it declines for the highest wage earners.

it presumably eliminates AMT which captures 4 M tax payers this year and if not corrected will impact 21M tax payers next year.

Of course AMT elimination costs 1.2 Trillion, the other reductions are necessary to recover the 1.2 Trillion presumably.

of course Bush gave 5 Trillion dollars in tax benefit to the top 1.3 Million tax payers, they can afford the best to pay incrementally higher taxes.

the elimination of AMT, will probably cost the average middle class family onthe costs 1000s of dollars if not 10000s. while the rich just get richer, the middle class is finally stratified.


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