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View Diary: What's a Human Being "Worth"? The Moral and Economic Crisis of the 21st Century (192 comments)

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  •  Should the upper middle class lose their (0+ / 0-)

    housing tax deductions.

    A $600,000 house in California or metropolitan Boston at 4% interest and 1% taxes costs $30,000/year if one disregards paying down the principal, which is merely forced savings.

    A couple making $110,000 can easily pay that since it basically means the equivalent of making $80,000 and living rent-free and forced savings of $10,000 to $20,000/year via principal reduction payment.

    Perhaps a non-refundable 15% tax credit (less one's tax percentage) should be used. A middle class couple paying a 23% average tax rate would lose their housing tax deductions and the non-refundable tax credit.

    When housing prices are high, a new $600,000 house means $25,000 in construction wages and $575,000 of other things such as landowner financial windfall and builder profit.

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