Are These Tax Breaks Next?

There is nothing wrong with doing both.

But so far for the last 4 years I do not remember hearing that from the ruling class..... btw has a budget even been passed in the last 4 years?

As far as least afford it, not a single living person (well most politicians can and a few uber rich) or anyone being born can afford the path we are on!

But we are not talking about 5% of the population we are talking about all Americans and future Americans as a whole.

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I am genuinely confused a bit here; I thought that closing tax loopholes was a primarily Republican focus for debt reduction. That and reducing govt. Spending.

Although I would be negatively impacted by many of those ideas for closing tax "loopholes", I can see the reasoning behind many of them.

It IS a kind of income when you have your health insurance paid for by your company.

I think the very wealthy SHOULD pay taxes on interest from their investments.

I think second homes SHOULD have no tax deduction for interest on the mortgage.

^^^ there is also imputed income if your employer provides more then $50k? Of life insurance for you.
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The problem with loop holes is many of them were put in for a specific reason. Some for good reasons and some for bad, the problem is which are good and which is bad? It's all in the eye of the beholder and so a matter of opinion. While I agree in principal we should close loop holes I don't even begin to know where to start and where to stop.

For example:
-I can deduct state income taxes from my federal taxes, that's a loop hole for sure and one I like. It definitely lowers the taxes I pay to the feds. On the other hand, how much of my federal income tax I can deduct from my state income tax is capped. In my opinion that's only partially a good loop hole, the state capped it to minimize how much income they are losing due to federal taxes.

-I can only deduct medical costs paid out of pocket after exceeding a % of my income. Useless to me because at this point in my life I've never exceeded that % so yeah, I could see doing away with that one by calling it a bad loop hole because I don't get to partake in it. On the other hand my parents are at an age where they are retired and regularly exceed that now so they would think it a bad thing to get rid of.

-Deducting mortgage interest on a second home is a bad thing, right? But if that is bad why is it good on a first home? Also it can be argued allowing interest to be deducted on every purchase is a good thing as it encourages people to buy which creates jobs. That's good isn't it?

Really loop holes and our tax code in general is a quagmire. Personally I say throw it all out and start out and give us a flat tax or national sales tax.

Personally, I think medical costs should be all, or nealy all deductable. The gov wants us to buy health insurance, right? And be self reliant and take care of ourselves, right? Well, then let us deduct these expenses. They can be a lot. Yes, you can deduct what is over 7% (I think) of your income, but why such a hiigh limit? I don't see why it should not be totally allowed.


The reason I think mortgage interest loophole on second home should be closed is that A home is not a luxury. A SECOND home is.

I believe medical should be fully deductable, though my pet peeved is the States like NC that collect sales tax on food.
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I lived in NM for 3yrs and that was a shocker. First time I lived in a state with Income tax, property tax and sales tax which meant I was paying more taxes than I was used to. Then the sales tax applied to everything while other sales tax states I had lived in did not apply to basic food needs.

Forgot to bring up earlier the biggest loop hole of all. Over 40% of the people in this country pay no federal income tax at all. Personally I think that's a very bad thing and want that loop hole to disappear but many will argue vehementely against doing away with it.

While we're all fantasizing, I would like to add a 'loophole'... I don't think active duty military should have to pay income tax (fed or state) on their wages.
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I live in Texas a state with a rainy day fund that totals over 10 billion dollars.
This state however ranks number 49 in the amount spent on mental health care and its pretty far down the list on money spent per capitia on education and other forms of healthcare.
Cutting spending does not mean the government is going to address the needs of its population. Especially those that are needy.
The national average spending for mental health in this country is 125$ here in Texas we spend a mere 39$. We also have a Texan a day commit suicide. That is 365 Texans that die each year.
Give me a tax increase of deficit spending in this State if it ensures the long term health of future Texans.
Cutting spending alone cost lives. That cost the rest of us in terms of finances and human resources we are losing for the future. Shalom

Stay put in a war zone for your entire enlistment and you wont....

Have to agree with you on this one, it's one of those things that should be done.