Taxes, the New Savior?

By
Managing Real Estate Broker with Flexit Realty "Flexible Home Selling Solutions"

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,Wondering Who's Next? 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!

Thanks For Stopping By, www.GaryLWhite.com

Comments (4)

Michael Weaver
The Vearus Group - Indianapolis, IN
Real Estate + Technology

Nice.  I appreciate your stand. By the way, could you work your butt off, make lots of money, then pay my mortgage, utilities, and food.  I like sitting on the couch and watching movies, and I think that it is fair, cause you have a lot of money, you should be able to help "the little guy."

 

Have a good one!

Dec 05, 2010 01:38 AM
Jon Budish
Resident Realty - Fort Collins, CO

When business of any kind pays higher taxes, the extra cost is passed along to the consumer. No business will keep their doors open while losing money. It sounds really basic, but I don't think half of Americans understand it.

Dec 05, 2010 01:40 AM
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Michael, sounds good to me...do you have room on the couch?  I like the colts!  Thanks for the comments Michael.

Dec 05, 2010 02:23 AM
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Jon, I think your assessment of system and people's understanding is right on.  Hopefully if we can get people to pay a bit more attention to the issues we can create a better option than is being presented.  Thanks for the comments Jon.

Dec 05, 2010 02:25 AM