Tag Archives: Congressional clowns

Could Trump tax bill trigger a housing crash?

Reducing or eliminating the deductions for state and local taxes won’t just cost some people money in terms of increased taxes. The Republican bills could also push down property values, attacking the most valuable assets many families have.

As The New York Times reported,”An analysis of the Senate bill by Moody’s Analytics concluded that home prices in Manhattan could fall nearly 10 percent in the coming years because of the bill.”

What for now is unknown is how many properties that are currently valued for more than any loans against them could wind up being underwater after the full effects of the legislation are felt. With properties being worth less because of the reduction of the tax benefits of home ownership, some people with significant loans could find that their homes will not longer sell for enough to cover underlying loans.

I have no way of knowing if so many properties will be underwater after this legislation that another real estate crash could be triggered. The question is whether banks and other lenders holding these loans know.

How Trumpcare cuts taxes for the wealthiest, in one simple chart

The Senate Republican health care bill is a massive tax cut bill for the wealthiest citizens  masquerading as health care reform.  It would eliminate the Net Investment Income Tax, which applies only to income from investments and only on taxpayers making more than $200,000 or $250,000, depending on filing status.  That’s the main reason almost… Continue Reading

Multinationals seek tax heavens, er, havens . . . oh, what’s the diff?

More and more U.S.-based corporations are growing wings and flying away from their U.S. tax obligations. Bloomberg puts it as simply as possible: “U.S. companies looking for lower tax bills are heading for the exits, and Congress is doing nothing to stop them.” The immediate impetus for the story was Pfizer’s proposed purchase of AstraZeneca,… Continue Reading

Food stamp cut passes House; why should “the takers” eat?

The House of Representatives in September passed, on an almost party-line vote, a bill slashing $40 billion from the Supplemental Nutritional Assistance Program, more commonly known as food stamps, Read about it in the New York Times. The vote may have marked a new high, or low, in mean-spirited political gamesmanship. If this bill survives… Continue Reading

World’s teeniest tax bracket

With the new tax bill passed by Congress in January 2013, there are now seven marginal tax brackets–10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. OK, no big problem there. Here’s the stupid thing: The only single filers who fall into the 35% marginal bracket will be those with taxable income of $398,350 to $400,000.… Continue Reading

Congress’s “2% Solution” creates another mess for taxpayers

After some pathetic grandstanding by House Republicans, Congress passed an extension of the current Social Security tax break in December. Sounds good, right? Get into the details and see how Congress can make the tax rules more complicated than ever — even when doing something as simple as this. First off, the extension — reducing… Continue Reading

Lies, damned lies, and unemployment statistics

     The latest word from the federal number-crunchers says the November unemployment rate dropped to 8.6% from 9% the previous month.  So why doesn’t it feel like the job market is getting better?      Simple reason:  The government does not include people whose unemployment benefits have run out in the official unemployment figures.  So while… Continue Reading