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Politics : Foreign Affairs Discussion Group
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To: Brumar89 who wrote (218636)2/15/2007 3:36:30 PM
From: Katelew  Read Replies (1) of 281500
 
Brumar, the only thing stopping the R's from eliminating the AMT is the cost to the treasury. This admin. or its surrogates are on record in stating this.

Maybe you remember when the R's first began to float the idea of eliminating or modifying the home mortgage interest deduction?? Much of the discussion was in the context of using the increased revenues this would generate to offset the loss of AMT revenues.

The R's know govt. revenues have to be increased. Panels have been formed which are looking at the whole range of deductions and tax credits for individuals. I don't know if they are looking at the same for businesses.

Eliminating mortgage interest deductions completely would raise approx. 150 billion for the treasury, so this is a biggy. Some of the capping proposals would raise 70 billion and would hit the 'richer' classes harder and tend to spare the mid and lower classes.

The problem with either is the dislocation to the economy and the likely blowback. For one, it would cause real estate values to drop, esp. at the high end. This is deflationary and would ripple thru the economy as many people borrow against homes and use them as collateral. And it would reduce the ability of first time home buyers to enter the market.

My home is paid for so it wouldn't directly impact me. But I would oppose it for the dislocation to the economy and because I don't want to see the value of my real estate drop.

This is what I mean by voting for your own self-interest, but I know you see that so please don't think I'm being condescending.
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