Thursday, October 23, 2008

The Bizzarro World of Obamanomics

It's going to be one hell of an LSD trip.

One proposal clarified yesterday during a debate between McCain and Obama economic advisers is this, as reported by WSJ.:

Obama adviser Austan Goolsbee said at the debate that a proposed 10% deduction on mortgage interest for taxpayers who don't itemize would carry a "work requirement."
Got that. At some point during unemployment you would lose the tax deduction. Just what America always needed, a tax increase for the unemployed.

1 comment:

  1. Plus it adds another complication to an already way overly complicated Federal tax system. Not only the taxpayer but the tax auditor must match up employment records with tax paying. Will this be done month by month or can you work a certain number of months and not others and what is considered to be work, will “community organizers” be considered to be workers. And how many of these people will actually get these tax breaks, since many of them got into mortgage trouble because they weren’t very good with finances, so I doubt if they are very good with their taxes either. The ones who got into trouble just because they were dumb will miss out while the speculators will milk the system for all the tax breaks they can get.

    Which is why I favor a flat tax system, the cost of just complying with our present system is just horrendous both for the taxpayer and the tax collector. Plus of course the many different ways the tax system twists the economy to make what should be good economic decisions into bad ones and bad ones into good ones. And finally the corruption caused by all the effort to get the politicians give special tax breaks to special people dooms our political system (/tax system rant off)