11/25/10

What the top 1% are thankful for

It's the mortgage-interest deduction!

Does anyone really believe that super-rich people aren't going to continue to buy houses if they don't get this ridiculously regressive tax benefit? Here's more
From the numbers above, it’s clear that the benefit derived from the deduction is almost perfectly increasing with income. Low- and middle-earners are less likely to itemize their returns, which makes them unlikely to benefit from the mortgage-interest deduction. And because they make less money, they pay taxes in a lower bracket—meaning that every dollar in deductions reduces their tax bill by less than it would for someone in a higher bracket. Calling the mortgage-interest deduction a middle-class tax break essentially requires us to define someone in the 80th or 90th percentile of earnings as middle class. But they’re not; when you make more than 80 percent of the country, you’re rich, even if you don’t want to admit it.
So, Happy Thanksgiving everyone, especially if you deduct mortgage interest! Please use some of you excess tax savings from this ludicrous subsidy to buy a turkey (or dozens of them) for those less fortunate.

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