This issue came up awhile back, but then it quieted down and we didn’t hear anymore about it. Now, the issue has come up again and everyone is arguing about it. Economists have said that our mortgage interest tax deduction doesn’t work properly, but what do the American people say about this? Naturally, more than 60% of Americans don’t agree with that opinion, and what is also worth noting is that most Americans were reluctant to agree with any tax deductions; period.
Who Truly Benefits from the Tax Deductions Anyhow?
The battle behind the tax deductions is that it only benefits high income earners, and that by eliminating we can reduce the overall tax rate. The way it works, is that if you are in the 35% tax bracket, then you only get $35 back for every $100 that you paid in mortgage interest. When you are in the 15% tax bracket, then you save only $15 per $100 of mortgage interest. This is the truth which is hard to contest, but there are people that look forward to getting a tax return because they are in need of money. It’s hard to take something away from those who don’t have anything else right now. I can tell you that this year; there were many people who were counting on their return to get them through for just a short while before the next moment of desperation hit.
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