Reducing or eliminating other big breaks — deductions for state and local taxes, the mortgage deduction, interest-paid deductions and miscellaneous deductions — shifts the burden much further down the economic ladder.
For GM and Chrysler these are fire sale months, fed by inventory reductions, dealer closings, brand liquidations, the best deals in years, extra tax deductions (interest payments and sales taxes are tax deductible until December) and the clunker money.
Individual line items for different kinds of income and deductions (interest, capital gains, business profits) flow through from the partnership onto your tax return.
THE COST In addition to being one of the oldest federal tax deductions, the mortgage interest deduction is the largest one.
And in contrast to the United States, there is no deduction for interest paid on home mortgages.
Do you want to preserve the deduction for interest on home mortgages, in the name of encouraging homeownership?
A glaring one was the provision eliminating the deduction for interest paid on credit cards and other consumer loans.
The deduction for interest on residential mortgages, probably the best-known tax expenditure, amounts to a giant subsidy for homeownership.
Don't expect to get both a higher payout and a bigger deduction if interest rates rise, however.
This could be done by limiting the tax deduction on interest payments or creating an equivalent type of deduction for dividends.
The key features are (a) an income tax on corporations and (b) a deduction for interest payments.
