Newest tax cut proposal

[jainen]

In his weekly radio address, the president expressed support to end the taxation of canceled mortgage debt. Apparently this provision is already pending in Congress.

[TAXBILLY]

http://www.govtrack.us/congress/bill.xpd?bill=h110-1876

taxbilly

[jainen]

>>http://www.govtrack.us/congress/bill.xpd?bill=h110-1876<<

Something wrong with that link. It says that's a tax cut the DEMOCRATS are proposing.

[TAXBILLY]

Hmmm ... with all of the cosponsers for the HR & S bills they come out bipartisan.

taxbilly

[So and So]

Well, big deal. Some states already prohibit COD on home mortgages.

[JohnH]

Hmmm ... with all of the cosponsers for the HR & S bills they come out bipartisan.

taxbilly

Any possibility this is because it's such a populist issue and there's an election coming up?

Nah, probably just a coincidence since nobody in the US has noticed the issue until recently.

[jainen]

>>it's such a populist issue<<

Not what I call populist. Most people I know don't want a tax subsidy for dodging their honest debts. It's bad enough that property owners can already take a deduction for debt based on their equity while debt based only on wages is not so favored. This new proposal is not a benefit for anyone caught in insolvency by economic problems, who aren't taxed anyway. This one is for wealthy people who simply choose to not repay their government-guaranteed loans.

[JohnH]

You're right. I shouldn't have used the word "populist".

Apparently it's more basic. The assumption must be that there are enough wealthy people not paying their government guaranteed loans to make it worthwhile to buy their votes.

[So and So]

You're right. I shouldn't have used the word "populist".

Apparently it's more basic. The assumption must be that there are enough wealthy people not paying their government guaranteed loans to make it worthwhile to buy their votes.

I actually think it's just the opposite. I think "they" think that if they make this huge annoucement, the regular guy will think "Well, at least they're trying to help us".

But, the regular guy doesn't realize that they probably wouldn't have had any tax consequences anyway.

So, Congress and the Prez get good publicity without it actually costing much, if anything.

JMO

[JohnH]

Funny how politics is like that.

Two equally valid explanations can be ascribed to a given action.

More or less like the "I voted for it before I voted against it" response.

That actually begins to make perfect sense when one looks at it from the politician's point of view.