Follow WallStreetBlips on Twitter
Happier news
Paul Krugman —
Since the last two posts were very down on the administration, let me say that the initial leaks on health care are encouraging. The supposed commitment of $634 billion to health care reform isn’t quite enough to pay for the subsidies that are an essential part of a universal-care system, but it’s not ridiculously short, either. It’s beginning to look as if Obama’s really going to go through with this — and if he gets us to universality, his legacy will be secure.
Tax Hike
Across the Curve —
... The WSJ reports that the Obama Administration plans to fund universal health care by limiting the tax deductions of taxpayers in the upper brackets. In the real world that is identical to raising taxes. ...
Obama Proposes to Cap Mortgage Interest Deduction for Higher Income Taxpayers
Calculated Risk —
Jon Lansner at the O.C. Register has more including responses from the NAR and the NAHB: Obama plans mortgage-deduction cut (ht John and Tom) From the WSJ: $318 Billion Tax Hit Proposed The tax increases would ... [reduce] the value of such longstanding deductions as mortgage interest ... for people in the highest tax brackets. Households paying income taxes at the 33% and 35% rates can currently claim deductions at those rates. Under the Obama proposal, they could deduct only 28% of the value of those payments. The changes would be phased in ...
Obama to cut mortgage interest deduction for high-income households
Bubble Meter —
From yesterday's Wall Street Journal: President Barack Obama on Thursday will propose $634 billion in new taxes on upper-income Americans and cuts in government spending over the next decade to pay for his promised health-care expansion. ... The tax increases would raise an estimated $318 billion over 10 years by reducing the value of such longstanding deductions as mortgage interest and charitable contributions for people in the highest tax brackets. Households paying income taxes at the 33% and 35% rates can currently claim ...
