Here’s the problem: it’s not at all true. The actual proposal is to almost double the standard deduction to $24,000. If you actually have more than $24,000 in deductions, you’ll still be able to claim the Mortgage Interest Deduction. However, for most people this standard deduction is high enough that they won’t need to itemize. Even Slate admits that some experts say this will benefit roughly 38,000,000 taxpayers!
The first benefit is that most people will have simpler taxes. No more complicated deductions to figure out. No more keeping track of documents from the mortgage company and all those little slips of paper you got from donating to charity. Congrats, your taxes may well be reduced to one document and an hour with TurboTax.
The second benefit is a little trickier. The 2016 poverty line is $24,300 for a family of four. This higher standard deduction means that families near the poverty line will not be taxed into poverty. It means that they can spend more of their income on goods and services rather than taxes. That benefits the family and the economy. A win-win situation. Don’t tell me poor people don’t pay income tax, because that’s a lie.
More specifically, a Federal judge has ruled that MERS tried to circumvent state law, costing counties millions of dollars in lost recording fees, compromising public records, and confusing consumers. Needless to say, executives form MERS disagree with the judge’s interpretation of state law.
This ruling could cost MERS millions of dollars — billions if other jurisdictions are included. Since I have always felt that the entire purpose of the corporation was to get around the law, I hope they get what legal penalties they have coming to them.
In Closing: Yeah yeah I’ll keep postingNSAlinks as long as there are links to post (bonus anti-terror link!); tax reform; maybe it’s because nobody can afford overpriced organizing stuff; that does sound a little unfair; it turns out that Medicaidis better than nothing– for hospitals!; a couple diet, exercise, and obesity items; about nothing, “not that there’s anything wrong with that”; and “take our puppet, please!”
In Closing: Must see pictures from Turkey; Always Low Wages; Four Horsemen; Duhpartment of Research shows young people are generally progressive; right, because I totally am going to go to a drugstore for sushi and a makeover</sarcasm>; food stamps are a good thing (heh); tax breaks; I kinda like this lady’s style; and how lazy do you have to be for this to seem like a good idea?
Forbidden Fruit. Apple has been getting grilled for following the law in a manner that reduces their taxes. Frankly, most of us choose to do legal things to minimize our tax liability. Give a charitable donation? Buy a house with a mortgage? You could be guilty of following the law! I’m with the CEO of GoogleandBill Gates on this one: Don’t like it? Change the law!
The Scandal That Wasn’t: So thanks to Karoli of Crooks and Liars for actually digging up some facts to go with our conspiracy theory witch hunt on the IRS allegedly investigating too many conservative groups. When roughly 80% of applicants are conservative groups, you should be shocked if roughly 80% of those investigated aren’t conservative groups! But hey, let’s not let reality get in the way of a good rant.
George Harrison and Eric Clapton playing the opening track of Revolver, which is in my opinion the best album the Beatles ever did:
Just a reminder, my ideas for tax simplification include:
Make the standard deduction equal to the poverty line. Nobody will be “taxed into poverty” ever again.
Cap itemized deductions at 3 or 4 times that. Most people will never itemize anyway.
AMT is now obsolete, so get rid of it.
Adjust the brackets accordingly. I’m sure the IRS has policy wonks who can do this in a long weekend.
Add a handful of “front page” deductions everyone can take over and above the standard or itemized deductions. These should be really important things. I suggest health insurance premiums, adoption expenses, charitable giving, and mass transit expenses.