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Loopy `loophole’ ideas

first_img AD Quality Auto 360p 720p 1080p Top articles1/5READ MORECoach Doc Rivers a “fan” from way back of Jazz’s Jordan ClarksonThe legislative policy analyst is asking lawmakers to consider a variety of ways to discourage investment in California, including reducing the $1 million limit on deductions, removing home equity lines from the list of deductions, replacing deductions with less lucrative credits and taking away deductions on second home mortgages. There is no reason for taxpayers to buy into a fiscal “emergency” that doesn’t exist. Taxpayers see little return on their investment no matter how much they hand over to the state. Despite the billions taken annually from taxpayers, the state has failed to provide decent roads, adequate schools, enough prison beds or responsible economic planning. We see no reason to reward failure with higher taxes. Lawmakers and the public employee unions that put them in office have a vested interest in maintaining the size of California’s mammoth, yet ineffective, government, which has become an industrial complex for those in its employ. With generous car allowances and per diems they receive just for driving to and showing up for often short work “weeks,” lawmakers should think about eliminating their own perks before they start knocking on average people’s doors with fedoras in hand. State considers eliminating break on mortgage interest. California tax policy tends to travel in the direction opposite the economy. Just when hiring, spending and home values are leaning on the ropes for support, Sacramento delivers a sucker punch after the bell. State legislative analysts used this traditionally slow news week to suggest reducing or eliminating homeowners’ ability to deduct mortgage interest from their state income taxes. The independent policy wonks euphemistically called a tax code that benefits so many regular people a “loophole” that helps the rich, according to a report from the MediaNews Group Sacramento bureau. While the deduction certainly benefits high income earners – it is good for up to $1 million loans and lines of credit – there are plenty of people struggling to make $400,000 mortgages who hardly qualify as “rich.” With the foreclosure crisis, variable interest rate loans adjusting higher and a tight credit market all swirling, this is not the time to toy with one of the few decent tax deductions offered to working and wealthy families alike. Bad times like these should be viewed as an opportunity to lower taxes and spark growth, hiring and spending and reverse the tax policies that drove so many people and businesses from California. Home ownership should be encouraged, in order to build stable communities in increasingly unstable times. Instead of igniting an economic fire, lawmakers are trying to smother Californians into accepting tax increases by threatening to release prisoners and shortchanging “guaranteed” school funding. Taxpayers should dismiss those scare tactics and demand that lawmakers find a way to educate children and keep prisoners locked up. We have a New Year’s resolution for Californians: Deduct any politician from office who toys with the tax break on mortgage interest.160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!last_img

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