The Tax Cut Deals A Nasty Blow To Many Lower-Income Seniors

[JDPriestly]

Every year, taxpayers risk losing their favorite tax breaks, if they are not renewed. That's what happened to millions of homeowners. For 2008 and 2009, homeowners who didn't itemize their deductions were able to get an extra deduction - on top of the standard deduction - for paying local property taxes. Individuals could reduce their taxable income by as much as $500, couples could cut theirs by $1,000.

The provision, which has saved homeowners about $1.6 billion a year, expired for 2010 and was left out of the new tax law.

"A lot of Americans don't make so much money that they itemize their tax returns. But those same Americans own property," said Sen. Max Baucus, D-Mont., who sponsored the original tax break. "It seems to me that they, too, should have the ability to deduct it. It's a matter of equity."

Taxpayers who itemize will continue to be able to deduct local property taxes. About two-thirds of tax filers don't itemize.

http://www.cbsnews.com/stories/2010/12/25/ap/national/main7183062.shtml?tag=channelMore

So, if you or your parents are retired and are buying but pay too little interest to itemize deductions or own their home yet still pay local property taxes, they will not be able to deduct their property taxes from their income for paying taxes.

On the other hand, if you or your parents are renting, your landlord probably has deductible expenses and possibly enough interest to itemize deductions. Your landlord will be able to deduct the local property taxes he pays from his income tax. Do you think the landlord will pass this savings on to his tenants?

Meanwhile, if you read to the end of the article, you realize how many tax breaks are provided to give incentives for business to hire and make tax-free income in countries other than ours. The tax breaks go to the outsourcers while the tax breaks for seniors and other homebuyers who do not itemize were allowed to fall.

Who is watching out for the American people?

No one, I gather. Obama should have caught this one. This will come back to haunt the Democratic Party.

[Fumesucker]

1. Rich Americans are American People too..

Obama and Congress were looking out for them..

So you can't say that no one is looking out for the American people because TPTB are definitely looking out for a subset of Americans.

[lumberjack_jeff]

2. "caught"?

It's not there because they didn't want it there.

No one in DC wants tax cuts for the poor.

[bvar22]

3. There you go....

begrudging them their wealth.
"They are just savvy businessmen."
"Look at all the Baseball Players."
"Its the Free Market."

[Name removed]

4. Deleted message

Message removed by moderator. Click here to review the message board rules.

[somone]

5. Lower-income seniors are no match for corporate CEOs at election time

Heck, with rising fuel and food prices, they might not be able to get to the polls