Obama…Tax Us Into Total Dependency On The Fed

If you want to destroy the economy of the United States (again) then selectively getting rid of mortgage interest deductions is a fine way to start. One of the prime motivating reasons for folks to buy a home—afford a home—rather than rent is mortgage deductions. A good chunk of the current unemployed have fallen out of the construction industry.

I believe in a flat tax, personal and corporate, and the elimination of all deductions. A 10% tax would be easy to budget around, even on minimum wage, and budgets and wages, and eventually prices, would adjust. Just think of what a boon it would be to corporations if they were given a 10% tax rate, that’s 26% lower than the current rate, and even 2% lower than the Irish rate that seems to be dragging so many corporate headquarters (and taxes) out of the U.S. And those companies that are paying nothing now, due to deductions, would be paying just like the rest of us.

I do believe in tax credits for those areas which benefit the country by investment, for instance tax credits for non-hydrocarbon energy production. And even that is stretching the Constitutional authority of the Federal Government.

This from conservativeactionalrerts:

Americans will pay more in taxes in 2011 than they will spend on food, clothing and housing combined. Yet, Barack Obama still wants even more!

For years, the Home Mortgage Interest Deduction has been a “cherished” part of the U.S. tax code. Last year’s Obama Deficit Reduction Commission, led by former U.S. Senator Alan Simpson and Erskine Bowles, called for the elimination of the mortgage interest deduction. Now, the new presidential commission has been instructed to look into that elimination process again.

Outside of budget talks, eliminating deductions is likely to be part of any discussions to simplify the tax code, although that process is expected to continue through at least the 112th Congress. Even with broad support for the deduction, many taxpayers do not itemize their returns, a required element to take the deduction. Roughly 43% take the Home Mortgage Interest Deduction.

CNNMoney.com reports: “President Obama’s plan to limit two popular deductions for wealthy taxpayers will hit a wall of resistance from entrenched special interests. The president once again proposed in his budget to curtail high-income earners’ tax deduction for mortgage interest payments and charitable contributions.”

GOP.com writes: “Since he (Mr. Obama) has been in office, our deficit has skyrocketed, the cost of food and gas has gone up, and we have lost millions of jobs. And as if taxes aren’t high enough, President Barack Obama’s new budget proposal calls for an additional $2 trillion tax hike on American families and small businesses to fuel his big government agenda.” Please fax your Congressmen!

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