Consider just one tax change that should be made and certainly will not be. The deductibility of mortgage-interest payments, by which the government will forgo collecting nearly $1 trillion in the next decade, is treated as a categorical imperative graven on the heart of humanity by the finger of God because it is a pleasure enjoyed primarily by the wealthy. About 75 percent of American earners pay more in payroll taxes than in income taxes, and only around 30 percent of taxpayers itemize their deductions.
We agree with George that it would be an improvement in the tax code. What is unusual is that George doesn’t tie it to The Donald’s tax proposal that came out recently. We all agree that his whole tax proposal will not pass as is but it is the proposal that we currently have. According to USA Today, part of the proposal is:
The standard deduction, currently $6,350 for single people and $12,700 for married couples, would double. As a result, many more low to moderate income families would pay no taxes. But all other deductions, except for mortgage interest and charitable contributions, would be eliminated, including state and local taxes and medical expenses.
So for married individuals would need over $25,000 in deductions to itemize from just mortgage and charitable contributions. According to USA Today, this change would reduce itemizers from George’s estimate of 30 percent to just five percent. The Donald would effectively kill the mortgage interest deduction. We are sure that The Donald can count on George’s support.