Those champions of the economy? The House Republicans have held the line on closing tax loopholes. Closing loopholes would require the wealthy to pay a more proportional share of the cost of maintaining the country. Preventing such action has been their battle cry. However, Increasing the middle class tax burden $70 billion is a good plan?
They did double the taxes paid by banks on student loans. Just let the interest rate on student loans double thus doubling the profit for banks, from $9 Billion a year to $18 billion a year. This is not at the cost to the wealthy, it is a profit for the wealthy at the expense of the middle class. This did doubled the taxes banks pay. 2 X 0 = 0. The $0 taxes paid by Bank of America doubled to $0 while further depressing the middle class.
Could the need for this $70 billion be better eliminated buy eliminating Oil Industry subsidies?
In 1913, 100 years ago this year, congress recognized the fact that interest paid to banks reduces the the amount of money an individual has and is income for the banks. All interest paid to banks was therefore tax deductible and banks would be required to pay the taxes on that income. This included mortgage interest, car loans, and personal loans.
In the century since, banks have been given loopholes, the euphemism is “tax shelters”. Thus “tax evasion”, which is illegal, became “tax avoidance” which legalize tax evasion. To make up for the loss in federal revenue the tax deductions for car loans and personal loans was eliminated.
With all of Obama’s attempts to get congress to close tax loopholes, Republicans in the US House of Representatives have found a loophole they are willing to close and thus raise taxes.
Republicans are not willing to close the loopholes and make the banks pay their taxes but, Republicans are willing to consider taxing individuals for the banks sheltered income.
The Republican solution is to tax the middle class on that Bank income before the bank gets it by eliminating the mortgage interest deduction. The estimated cost to the middle class is $70 billion each year. This again does not effect the wealthy, the middle class are the ones with mortgage debt. This simply further degrades the American dream of someday owning your home, depresses the middle class, and removes customers from the market.
It is clear, Republicans do want to raise taxes on 98% of Americans while protecting the wealthy.
http://finance.yahoo.com/news/mortgage-interest-deduction-could-change-184107592.html
Angus Croix 