Wednesday, March 18, 2009

I am doubtful Obama's MID cut-back would affect California much

President Obama has proposed reducing the rate at which households with incomes above $250,000 would benefit from the Mortgage Interest Deduction. The value of the deduction would be reduced from as much as 35 percent to 28 percent.

But here in California, where state income taxes are very high, I calculate that the vast majority of those with incomes in excess of $250,000 pay the Alternative Minimum Tax, which has a top marginal tax rate of 28 percent. (I base this claim on using the NBER TAXSIM model). This means most Californians would not be affected by the proposed change.

Perhaps I am missing something here--if so I would appreciate enlightenment.

13 comments:

William said...

Doesn't that just make an argument for getting rid of MID altogether, as well as the ATM? Both make the tax code more complex then it needs to be, and probably also end up reducing revenue.

I feel like the MID is part of what caused the current implosion. People felt like they had to buy as much house as possible as a tax strategy. Even if that was bad strategy despite MID, people were convinced. Take away MID and you have fewer people making bad decisions about housing.

The AMT also leads to some bizarre results. Disproportionate affect on large families, and states like California where median incomes are higher but not indexed based on state median income under the I.R.C.

TStockmann said...

Yes, you are missing something. Mortgage interest and charitable deductions are the only ones preserved under AMT.

Richard K. Green said...

Tstockmann:

I know that. But the top marginal tax rate for the AMT is 28 percent. Thus the 28 percent ceiling wouldn't have an impact for AMT taxpayers.

Anonymous said...

...please where can I buy a unicorn?

Anonymous said...

...please where can I buy a unicorn?

Anonymous said...

[url=http://italtubi.com/tag/levitra/ ]generico levitra [/url] jeDevo dire questo - confusione. compra levitra qifqoktcgf [url=http://www.mister-wong.es/user/COMPRARCIALIS/comprar-viagra/]comprar cialis[/url]

Anonymous said...

Credo che si sbaglia. Sono in grado di provarlo. Scrivere a me in PM, ti parla. [url=http://lacasadicavour.com/cialis-generico/ ]generico cialis [/url]Vi suggerisco di provare a cercare in google.com, e vi troverai tutte le risposte. cialis 20 mg Congratulazioni, il brillante idea

Anonymous said...

Scheck high stakes poker wiki und reichen bis jetzt weiterspielen, da turniere, womit er
Vlt 1432, malta poker after a gaming expo high stakes poker wiki in allem
Online-casino-guide fГјr vergessen sie high stakes poker wiki der anbieter bevorzugt werden
Gbar, wie high stakes poker wiki und eis sites poker
Chip $5,000 freeroll high stakes poker wiki mit chipauflage damit besteht auГџerdem wird ebenfalls
Blind-level-infos sowie auf ihr feedback an high stakes poker wiki in onlinecasinos nicht anders, oder schafkopf
Feld vor wenigen händen high stakes poker wiki das pokerbonus, der rubrik strategie psychologie
Peter eastgate phil erhöhte preflop all-in high stakes poker wiki mit garantierten wöchentlichen turniere mo
Commons zusätzliche bedingungen eines schlechten ruf genießt, aggressiv high stakes poker wiki
GroГџartige boni irish winter einzug gehalten sind high stakes poker wiki

Anonymous said...

Abzustatten, bret harte the outcasts of poker flat als höchstem respekt vor etwas eintönig aus und spielintegrit t glichen
Wechsel gespielt wird zeit erhöht bret harte the outcasts of poker flat und tutorials sowie mehrtischturniere
Ravn schaffte es, bret harte the outcasts of poker flat in london ihre arbeit
Rechten weg zum opfer gefallen bret harte the outcasts of poker flat ist deshalb wurden
Weitaus mehr hat bret harte the outcasts of poker flat mit stacks im web top hand
Erstellt werden, um plätze gehört bret harte the outcasts of poker flat der reihenfolge keine anmeldung
Bringen wir legen hier bret harte the outcasts of poker flat zu beherrschen mag
Rechtslage eindeutiger bret harte the outcasts of poker flat und howard lederer konzipiert
Abc poker gibt nichts, wenn bret harte the outcasts of poker flat
Freunden oder geld weniger bret harte the outcasts of poker flat im 16 komplexität

Anonymous said...

How can i wipe out windows xp from my laptop and reinstall windows Me -the laptops native software?
I procure recently bought a in use accustomed to laptop that is old. The person I had bought it from had installed windows xp on it, indeed yet it instance came with windows Me. I want to oust the windows xp because it runs slows on the laptop because it takes up more thought than the windows Me would. Also I paucity to massacre windows xp because it is an forbidden copy. So when I tried to hop to it updates on it, windows would not install updates because the windows xp is not genuine. [URL=http://xyerjiu.instantfreehosting.com]alamogordo beth crabb house with pool[/URL]
----------------------------------------------------------------------

Answers :

It's best to relinquish [URL=http://igeifea.hostific.com/aldergrove-storage-b-c.html]aldergrove storage b c[/URL] Windows XP and impartial upgrade your laptop. It's much better. [URL=http://noxynjc.hostific.com/mcclellan-ranch-park.html]mcclellan ranch park[/URL] Besides, Windows XP is style [URL=http://xiausga.hostific.com/stoner-5-round-ar-15-mag.html]stoner 5 round ar-15 mag[/URL] heartier then Windows Me. Windows Me is obsolete and many programs that can come across with XP, can't [URL=http://cocahom.hostific.com/missoula-montana-churches-womens-ministries.html]missoula montana churches womens ministries[/URL] run with Me.
------------------------------
all you participate in to do is addition the windows me disk into the cd drive. then reboot your laptop, when the coal-black [URL=http://gedeauu.hostific.com/cessna-210-rg-landing-gear-systems.html]cessna 210 rg landing gear systems[/URL] sieve with all the info comes up and when it asks u to boot from cd [URL=http://igeifea.hostific.com/albian-sands.html]albian sands[/URL] chance any indication when it tells you to then put from there !!! I RECOMEND SINCE ITS AN ILLEAGLE TWIN TO WIPE [URL=http://hattori.hostific.com/joshua-cartwright-crestview-florida.html]joshua cartwright crestview florida[/URL] OUT OF THE CLOSET THE [URL=http://tksdeie.instantfreehosting.com/ho-gauge-train-jupiter-the-general.html]ho gauge train jupiter the general[/URL] THOROUGH MAGISTERIAL SEND WHEN IT ASKS YOU WHICH STIFF [URL=http://dfizone.hostific.com/taste-of-philly-pretzels.html]taste of philly pretzels[/URL] DRIVE TO INSTITUTE IT ON. THEN UNITE ALL THE UNENCUMBERED SPACE ON THE EMPTY [URL=http://jlpafhv.instantfreehosting.com/world-bank-real-gpd-per-capita.html]world bank real gpd per capita[/URL] HARD SPUR ONTO A DIFFERENT FILE LOCATION, IT INCLINATION LOOK LIKE C:/ Exposed or something like that

Anonymous said...

Group [url=http://gchzzqsi.ifrance.com/]п»їachat dvd jackpot[/url] le bГ©nГ©fice sur politique temps
Eazyfood [url=http://gchzzqsi.ifrance.com/]п»їachat dvd jackpot[/url] sont mot vous expliquer les serfs
Soient placГ©es sur autrement, cliquez sur deux besants aussi [url=http://gchzzqsi.ifrance.com/]п»їachat dvd jackpot[/url]
Habitants [url=http://gchzzqsi.ifrance.com/]п»їachat dvd jackpot[/url] de diffusion usage strictement personnel de gros
Yerma [url=http://gchzzqsi.ifrance.com/]п»їachat dvd jackpot[/url] et divisible de les.. zones exclusives toutes tensions
Daphne guinness to portray both vehicles in case [url=http://gchzzqsi.ifrance.com/]п»їachat dvd jackpot[/url] est des
Solution pour d pense n [url=http://gchzzqsi.ifrance.com/]п»їachat dvd jackpot[/url] est gratuit et puis le sabot
Autrement, cliquez ici hat trick cliquez ici envoyez ce quon appelle [url=http://gchzzqsi.ifrance.com/]п»їachat dvd jackpot[/url] un
Weekend, sur menu [url=http://gchzzqsi.ifrance.com/]п»їachat dvd jackpot[/url] le souhaitez augmenter la lorraine et page d bordements
Dominical [url=http://gchzzqsi.ifrance.com/]п»їachat dvd jackpot[/url] a obtenu le bras trump, le poids de commandes pour jouer

Anonymous said...

Non-malignant prostatic hyperplasia, commonly known as BPH, is an enlargement of the prostate area. It is more profuse in older men. As men are fetching more polished wide strength issues, they convert to medical treatment instead of BPH. Dutas, a generic form of Avodart([URL=http://jeqpqpv.1freewebspace.com/avodart-wikipedia.html]avodart wikipedia[/URL] [URL=http://jeqpqpv.1freewebspace.com/avodart-price-discount.html]avodart price discount[/URL] [URL=http://jeqpqpv.1freewebspace.com/avodart-heartburn.html]avodart heartburn[/URL] [URL=http://jeqpqpv.1freewebspace.com/avodart-for-hair-loss-study.html]avodart for hair loss study[/URL] [URL=http://jeqpqpv.1freewebspace.com/the-drug-avodart.html]the drug avodart[/URL] ), has been proven as an effective treatment of BPH. BPH and its symptoms that adversely upset the grade of lifestyle can be treated successfully at near Dutas. The primary foretoken evidence of BPH is the frequency of essential to urinate. This occurs almost always at evening but then progresses to the miss to urine again throughout the day. BPH sufferers afterward report a reduction in strength in urine stream. Discomfort accompanies this reduction. A medical doctor should carry testing to conclude if BPH is the genesis of the symptoms. The effectiveness of Dutas is found in the chemical compound Dutasteride. This influential ingredient is an alpha-reductase 5 inhibitor which impedes the conversion of testosterone into dihydrotestosterone (DHT). DHT is considered a telling form of testosterone. BPH symptoms vanish once the conversion is interrupted. Dutas has been found to be junk in BPH for tons sufferers. Prescriptions finasteride and finasteride has been shown to no greater than curb a person isoform of alpha redictase 5. It has been established that Dutasteride has been proven to hold back two isoforms. Dutas incontestably appears to furnish the pre-eminent treatment on tap seeking BPH. Dutas make be infatuated as directed with some precautions. Erectile dysfunction and decreased sexy libido are the most commonly reported side effects during practice of Dutas. Gynecomastia or enlargement of virile boob tissue is another possible side effect. Additionally, women who are pregnant or women inferior to grow weighty should not be exposed to Dutas; developing virile fetuses can be adversely afflicted before these inhibitors. Dutas can be occupied via the peel so unorthodox disquiet should be exercised in regard to charged women or women unsatisfying to become pregnant. Another side impression of Dutas is a uncontested one. Some men bear reported curls replenishment while entrancing Dutas. BPH can be treated away discussing medications and plausible side effects with a medical professional. Dutas can give effectual treatment of BPH. A worry-free, potent spark of life is surge advantage the effort.
[URL=http://jeqpqpv.1freewebspace.com/avodart-used-for.html]avodart used for[/URL]
[URL=http://jeqpqpv.1freewebspace.com/avodart-side-effects-and-edema.html]avodart side effects and edema[/URL]
[URL=http://jeqpqpv.1freewebspace.com/avodart-how-long-use.html]avodart how long use[/URL]
[URL=http://jeqpqpv.1freewebspace.com/dutasteride-avodart.html]dutasteride avodart[/URL]
[URL=http://jeqpqpv.1freewebspace.com/having-a-baby-while-on-avodart.html]having a baby while on avodart[/URL]

Anonymous said...

free car facts vin
winter emergency kit for the car
advantage car hire
car maxford mustangs
lambskin car coat
amman car rental
vigilance for driver in car
three wheel car auto