The Democrats are painting all tax deductions as loopholes and if you use them you are cheating those that pay no taxes… well I’m not rich, far from it in fact and I take tax deductions and if that means the moochers get less in handouts from the taxes I pay – so be it and whoopty do. I have worked for little money I get and the things I have, the moochers didn’t and somehow I’m a cheater if I take a Home Mortgage deductions or school expenses on top of all the school taxes I pay or businesses expenses that exceed the 2% rule or a child tax credit and various others – that’s make me a cheater while those abusing the system and living off my dime are not? Deductions are not loopholes that where put in place to spur economic growth and the same asses now calling them loopholes for cheaters voted for them.

If not why else would the democrats push for tax breaks on green energy, energy star appliances and hybrid cars? That’s the stuff they want you to buy to create a false demand for over priced products and in turn create some economic growth for green producers.

But the single biggest tax deduction most average John and Jane Citizen take is their home mortgage deduction and since interest on home mortgages is front loaded this benefits young struggling home owners the most and the democrat have purposed taking this away and labeling people that go out and buy a home that can’t pay cash for it as some sort of sneaky elitist ripping off the government by taking a deduction that they put in place.

The democrat-socialist suck!

Let me ask you how many people would be able to buy a home if they couldn’t take this deduction and suffered a higher tax liability in addition to front loaded interest mortgages? Not too damn many – how many people would even qualify for a loan?

This is the Democrat tactic to paint those that work and pay taxes and utilize the tax code put in place by congress as some sort of tax cheater by using their rules they made. They also falsely claim that the continuation of the Bush era tax rate is a tax cut – that is a bald face lie, you will not see a tax cut if the Bush era tax cut are extended- you tax rate will not change and no change in tax rate is no cut. It’s all hype.

What Obama wants to do is to go over the cliff and have the middle class tax rates go up and then after they go up plead with congress while blaming the republicans to roll them back to what they were and then run around thumping his chest claiming that what was the Bush tax rates that sunk the economy and now its the Obama tax cuts that will save it even though there is not change in tax rates… it’s all smoke and mirrors by Obama to make Obama look like the hero and the low information voters will buy it because they are stupid moron that should be allowed to vote.

This is the game they are playing – so what the Republicans should do is go ahead and purpose $800 Billion in tax increases on those making over $250K and $800 Billion in spending cuts that go in to effect immediately and if the spending cuts do not go into effect then the tax increases get rolled back immediately. See democrats want want tax increases to spend more but they never want to cut…

You are never going to educate the low information voters – they are willfully stupid that only way they will ever learn is to have it effect them in a way they can not ignore – there pocket book.

The Most Absurd ‘Loophole’ in the Tax Code

And I mean absurd in the most literal sense. We all know that the U.S. tax code is riddled with “loopholes”, exemptions and deductions intended to incentivize certain activities. Many of these are of dubious provenance and questionable utility. But, there is one that is particularly ridiculous. As in, how can this possibly be thought of as a loophole? But, to the technocrats in the federal government, the tax you don’t have to pay on the value of rent you don’t have to pay because you own your home is a loophole.

Read that last sentence again. Its called “The Imputed Net Rental Income on Owner-Occupied Housing” and the feds include it in their annual list of “tax expenditures.” That term is how Washington officially refers to credits, deductions and exemptions. Here’s how the federal government describes it:

Under the baseline tax system, the taxable income of a taxpayer who is an owner-occupant would include the implicit value of gross rental income on housing services earned on the investment in owner-occu-pied housing and would allow a deduction for expenses, such as interest, depreciation, property taxes, and other costs, associated with earning such rental income. In con- trast, the Tax Code allows an exclusion from taxable in- come for the implicit gross rental income on housing ser- vices, while in certain circumstances allows a deduction for some costs associated with such income, such as for mortgage interest and property taxes.

Let’s say you own a home and your mortgage is $1,000 a month. If, however, you instead rented the home from a landlord your rent, let’s say, would be $2,000 a month. To the mandarins at the IRS, you are “earning” an implied $1,000 a month because you own and not rent, and that “value” should be added to your taxable income. If you own your home out-right and don’t have a mortgage at all, you would be “earning” $2,000 a month which the IRS thinks should be added to your taxable income.

I have no doubt there is an elaborate, overly complicated theory for how this makes sense. But elaborate, overly complicated theories are also often silly. I own a car. If I didn’t, I would have to rent one from a rental firm, which would be considerably more expensive. Is the difference between my car payment and hypothetical rental fees something I “earned” which should be added to my taxable income?

Yes it is, say the bureaucrats in Washington.

This, to me, is a sign of how big a challenge we face in reigning in Washington. When the feds consider money I don’t have to pay because of a choice I made as a taxable event, then the leviathan is truly all-consuming.

Oh, and the feds list this exemption as one of the top “loopholes” in the tax code. They estimate that it “costs” the feds over $50 billion a year to not levy this tax. Yes, in Washington, items exempt from taxation are considered “costs” the government bears. This may be true in a strict economics sense, but it is also very revealing of how the government looks at its citizens.

Any scrap they let us keep is a “cost” they are kind enough to bear.