In response to:

Why Work Anyway?

1 mac Wrote: Dec 10, 2012 6:29 PM
A big hand-out is the mortgage deduction. It pushes prices up because the gov't subsidizes the interest and you can deduct it. you also an deduct your property tax. Then you can sell it for a big gain and no tax on any gain under 500K. This is welfare by another name. The only fair way is a flat tax' absolutely no exceptions, deductions, or credits.
SpaceVegetable Wrote: Dec 10, 2012 7:06 PM
The mortgage interest deduction is one of the few ways to even out the cost of living differential in this country. Tax brackets are not indexed by zip code, so people in higher-cost areas, who usually get higher salaries to compensate, are hit harder than those in lower-cost areas who can live the same lifestyle on less money (and hence pay lower taxes). Homes cost more in places like Boston or the NYC area than they do out in farm country, so those in the higher-cost areas will get higher mortgage deductions.

Sure, some could move, but there are jobs in these areas that aren't available in lower-cost areas, so that's not an option for most.

I was shocked by something I heard from one of my friend’s sons the other day.  He is a college graduate with a business degree and fortunately has a job.  We were all talking about the fiscal cliff and how it would affect people making over $250K a year.  His reaction to the top rate rising to 39% along with the California State tax increase due to Proposition 30 prompted him to say, “Whew, I think I dodged a bullet! I was up for a promotion with a pay raise but someone else got it. I’m pretty sure my...

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