Romney was trying to sell a lot of snake oil in his debate with the President. Here's a great example:
He absolutely insists that he has no plan to raise taxes. However, one of his aims that he has repeatedly stated over the last few months is that he is going to close loopholes and deductions. One of the loopholes he has said he wants to eliminate is the mortgage interest deduction, in which someone buying a house can deduct the cost of his mortgage interest from the calculation of his income. He wants to end this practice.
Let's do some calculations.
If you are paying $1,000/month in mortgage interest -- and I bet this is a low amount for most Americans -- you don't get to deduct 12 (months) x $1,000 from your reported income. If you still manage to stay within the 15% tax bracket, your paper income increases by $12,000 and you are taxed an additional 12 x $1,000 x 15% = $1,800. It doesn't matter if Romney keeps your tax rate the same. He is now forcing you to be taxed on a greater amount. Who cares whether it is called a tax or what ? A greater amount still has to come out of your pocket.
"I don't care," you say. "I rent my house," So your landlord has to pay more, and he will simply increase your rent to cover that cost increase.
Romney snake oil.
He absolutely insists that he has no plan to raise taxes. However, one of his aims that he has repeatedly stated over the last few months is that he is going to close loopholes and deductions. One of the loopholes he has said he wants to eliminate is the mortgage interest deduction, in which someone buying a house can deduct the cost of his mortgage interest from the calculation of his income. He wants to end this practice.
Let's do some calculations.
If you are paying $1,000/month in mortgage interest -- and I bet this is a low amount for most Americans -- you don't get to deduct 12 (months) x $1,000 from your reported income. If you still manage to stay within the 15% tax bracket, your paper income increases by $12,000 and you are taxed an additional 12 x $1,000 x 15% = $1,800. It doesn't matter if Romney keeps your tax rate the same. He is now forcing you to be taxed on a greater amount. Who cares whether it is called a tax or what ? A greater amount still has to come out of your pocket.
"I don't care," you say. "I rent my house," So your landlord has to pay more, and he will simply increase your rent to cover that cost increase.
Romney snake oil.
