In the State of the Union this week, President Obama said that people making over $250,000 would not see their taxes increases by one dime.
Obama’s new budget proposal is going to reduce the home mortgage interest deduction on people who make over $208,850.
Households paying income taxes at the 33% and 35% rates can currently claim deductions at those rates. Under the Obama proposal, they could deduct only 28% of the value of those payments…
For the 2009 tax year, the 33% tax bracket starts with couples with taxable earnings of $208,850, when adjusted for personal exemptions and various deductible expenses. A taxpayer in the top bracket paying $1,000 of mortgage interest, for example, would see a tax break worth $350 reduced to $280.
Hmmm.. reducing a deduction is the same as raising taxes. I wonder how he will resolve or explain this one.
If you liked my post, feel free to subscribe to my rss feeds
BlogoSquare