Quote:
Originally Posted by Michael G.
I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.
What cars are completely made in the states anymore??
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There seems to be quite a large difference between “wanting to bring back deductions” and actually getting such a law through Congress. Promised to us last year was:
No tax on tip income,
No tax on Social Security income for those with extra money coming in,
Higher deduction limits for real estate taxes.
However, despite wishes and promises, those things turn out to cost a lot more than one might think, and the money lost to cutting those taxes has to come from somewhere.
Where could that money come from? The government could stop returning IRS income tax money to the 40% at the bottom who pay no federal income tax. That would be pretty unpopular with a lot of voters. It could revoke the years of tax cuts that have primarily benefited those who make a lot more money than we do. That would be unpopular with people who can make million dollar contributions to inaugural ball committees. Congress could pay for it all by simply stopping the standard deduction on federal income taxes, letting people pay federal taxes without those deductions, as happens in states that charge state income taxes. That would be unpopular with everyone making enough so that those thousands of dollars we get back every year matter—95%. It would certainly raise my taxes a lot, yet it wouldn’t be considered a tax hike.
Or, we could charge tariffs on everything imported from other countries, claiming that isn’t a tax on US but on the other countries. However, given that it will raise sticker prices for a huge percentage of things we actually buy, it will have the same effect as a tax. To the extent that we buy things made overseas, WalMart shoppers, this will hit us pretty hard, especially those of us who work hard or did and spend most of our income instead of investing it. Perhaps a deduction for car loan interest could come out of that. But that may not work if tariffs come and go at whim.
So, don’t hold your breath.