Author: VernonEmeks June 20, 2020 at 13:46:36 from 220.127.116.11 in reply to: unnebulous foxiest posted by zpolet417 on August 26, 2016 at 03:25:42
Research calls for abolishing income tax deduction for home mortgage interest in 2017
The Senate Budget Committee approved the first budget blueprint since the election of Donald Trump by a wide margin Thursday.
The blueprint, which would dramatically reduce budget deficits, repeals a tax deduction that currently exists for the interest paid on home mortgages.
The elimination of the deduction would lead to an average tax bill of $30,300 per taxpayer, the budget office estimated Friday.
But some economists say it would take a substantial rise in mortgage rates that the House Republican blueprint doesn't address to make up for the elimination of a tax break that many Americans will receive after they pay their taxes.
And the potential loss of the deduction for all other sources of income, which can be earned by virtually anyone, would still push the annual tax bill for most Americans below what it would be without it, according to several studies.
If the House plan can't reach a consensus among congressional Republicans â€” the last major hurdle for passing tax legislation in an upcoming two-year budget window â€” then it will likely pass the Senate and head home to Capitol Hill.
Democrats are likely to oppose the final measure.
Rep. Jeb Hensarling (R-Texas) who led the House Ways and Means Committee after the GOP tax plan was unveiled said in a statement that he expected the tax plan to increase the deficit by $1.7 trillion over a decade â€” the first and largest in the $20 trillion budget deficit â€” but that House Republicans "should find a way to offset it through new revenue, job creation and deficit reduction."
"It's time for Republicans in the House and Senate to find a way to put the debt in check and end the fantasy of tax cuts for billionaires that have sent our economy into the ground," Hensarling added.
One of the major factors weighing on the House's vote was an analysis by the Congressional Budget Office of the effects of replacing the federal deduction for home mortgage interest with a new sales tax.
"The analysis suggests that for-sale sales tax increases, even after repeal of the deduction for home mortgage interest, would reduce federal revenues relative to current law by about $700 billion, including revenue gained from increased home construction and home maintenance expenditures and reduced net interest income," the CBO analysis reads.
For-sale sales taxes are currently $1.25 per transaction, with a 0.25-percent surtax levied on most nonresident buyers of residential properties.
A full repeal of the federal deduction for mortgage interest would lead to a 1.45 percent tax hike on homes valued more than $500,000 in value or more than $20 million.
House Ways and Means Chairman Kevin Brady Kevin Patrick BradyHow the Trump tax law passed
Man to front court accused of north qld servo hold-up, denies conspiracy to assault
Police have arrested a Perth man for alleged servo-style hold-up during a robbery of a motor vehicle, police say.
A 26-year-old man entered a motorist's car near Swanston Street, in the north east of the city on June 8.
He ordered the driver to get into his vehicle and when she did not, he struck her with a kangaroo cage.
Police say the suspect, who has previous convictions for assaults and other offences, is still on the run.
Police allege the victim, a 25-year-old woman, was driving an unregistered grey Volkswagen Golf at the time of the incident.
Police say the suspect, armed with a chainsaw, demanded $800 from the passenger.
They allege he then struck her numerous times in the head and face with a kangaroo cage, resulting in multiple stab wounds.
She sustained lacerations on her face and hands, had abrasions on her head and had bruises on her body.
It is alleged she had already spent an additional $600 in travel fees before the attack, a statement from the police spokesman said.
The suspect is charged with aggravated assault, assaulting police and committing robbery.
The police statement said detectives were seeking information about any witnesses.
Topics: courts-and-trials, police, brisbane-4000, qld
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