Do posters find turbo tax to be complicated? Because that program has made it very easy for me to do my own taxes and feel like I'm not losing out on some deduction. I have spoken to a couple accountant friends who have confirmed my thoughts that unless you got complicated taxes or are making a hell of a lot of cash, turbo tax does the same thing as an accountant . . . asks the same questions, allows you to input different figures to see if it is worth it to make a retirement contribution ect.
I did turbo tax a while ago, it seemed so fucking weird to me for some reason....dunno, i just hate dealing with it. Its worth it just to pay someone to do it all for me.
I think this would have drastic downside for millions of people. Those people that can barely afford their homes would all of a sudden have another several thousand dollars in tax to pay. I would guess this would lead to another housing market crash, along with its affect on the entire economy.
Well, all or a significant portion of it theoretically would be offset by the lower marginal tax rate. If you get rid of all the deductions the tax rates needed for equal revenue go down...
That's theoretically correct, but wrong in practice. Right now, the mortgage tax deduction is a benefit given to property owners by everyone. With a "fair tax", that subsidy is removed, thereby making non-property owners wealthier, but property owners poorer. The same goes for any recipient of a tax break or a subsidy.
At the same time, though, I think it would have drastic upside for millions of people. Those who can't afford to buy a house right now might be able to afford one. They'd be paying less in taxes because they wouldn't be subsidizing others who are taking advantage of the deduction. So they could save more for the down payment. I would guess that the increase of foreclosures for the people relying on the deduction would be counterbalanced by a big upswing in the economy as millions of people gain much great clarity and predictability about their personal finances. I don't know if I will owe the government $5000 this year, or the government will owe me that. I have to plan on owing the government, though, so I'm saving more just in case. I could be using that money to invest in my wife's business, go on a vacation, or buy consumer products. Instead it just sits there. If you multiply my personal dilemma by tens of millions, it suddenly becomes a major drag on the economy.
I have to first say "Fair Tax" is not necessarily an accurate name...fair is in the eye of the beholder...that's not directed at anyone, just a comment on how people are trying to frame it... But there are numerous tax breaks and subsidies out there so you can't look at this single deduction in isolation and say with certainty that it's not correct in practice overall. Regardless, this is the extreme example of a deduction that could go away in the argument. My hunch is there is no way this deduction would realistically go away. The NIMBY principal is hugely at work on any of these changes...that's why they're so hard to even discuss...
