Should your property tax be a tax relief item?
For most of us the ability to write-off our property tax payments on our income tax filing is very important. What isn't part of the discussion is the impact of the proposal to eliminate the housing property tax write-off, some are saying it could save the economy.
I tend to read and listen to as much information concerning our future as possible. One of my media imputs, without a plug, is my XM Radio. I can listen between appointments, change to various news media outlets and get a more well rounded spin on the propaganda!
The currently proposed elimination of this deduction is for those with a million dollars or more in taxable value. That takes 99% of the American Tax Payers out of the discussion, from losing the deduction.
If the debate runs true to form, those not affected will let the issue become an obscure discussion in a corner. Not being affected is less than an accurate assessment. So wondering what the outcome will be, since it will have little perceived impact on their life, may or may not happen.
The real issue is where will the cost be shifted? If wealthy people have to pay more in one place they increase income (charge more) in another place to make up for the expense. So when you look at the discussions of only charging the wealthiest Americans an increased tax do you really think it will come from their pockets?
I am not being cynical but realistic. These are smoke screens...tax shifts or should I say revenue shifts. It didn't take long for the health care providers to see that the health care bill was going to increase costs for them and starting making fiscal adjustments to "shift" cost burden to the consumer.
It didn't take long for employers to see that by eliminating their health care for employees and pay a fine it would lower their business expense.
It was reported the elimination of this tax write-off could generate nearly a trillion dollars. The words, " could generate" is another foggy distant way of getting those not affected on board with the proposal as good for America.
Until we have something, as "Nancy Polosi" said so eloquaintly, "you'll have to pass the bill to read it" we are in a wait and see mode.
Keep an eye open for the tax code changes it may affect you more than you think!