Deficit committee may recommend abolishing the mortgage and child care tax deductions
It was reported over the weekend that during his second two years in office Barack Obama is going to focus on reducing the national deficit. This is welcome news indeed in light of the fact that since Nancy Pelosi and Harry Reid gained power the Democrats have increased the national debt by $5 trillion.
Barack Obama has even commissioned a committee to explore ways to reduce the national debt, but unfortunately it appears very likely that instead of focusing on cutting Washington’s out of control spending this commission will focus on finding ways to increase the revenue flow into Washington. In other words, there is the very real possibility that ALL Americans–even those who earn well under the $250,ooo mark–will be facing higher taxes.
Before I go any further let me remind you of one of Barack Obama’s campaign promises:
“I can make a firm pledge, under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”
He repeatedly vowed “you will not see any of your taxes increase one single dime.”
Putting aside the fact that he has already broken that pledge with an increase in the cigarette tax, Barack Obama’s deficit committee is very likely about to recommend a further–and much more blatant–break from his “no new taxes on the middle class” pledge, for the committee is leaving on the table the possibility that they could recommend getting rid of the mortgage interest and child tax credits that many Americans currently enjoy.
This amounts to a huge tax increase on ALL American families as these are the two biggest tax deductions that middle class Americans receive every year and contrary to what Barack Obama might think, a loss of a tax deduction is equivalent to a tax increase. Instead of focusing on the real problem–spending–the Obama regime is likely to determine that it is the responsibility of the middle class to sacrifice so that Washington may continue its extravagant spending.
The committee is leaving open the possibility of eliminating these tax breaks because:
White House has said these and other breaks cost the government about $1 trillion a year
Barack Obama has estimated that these tax breaks cost the government $1 trillion a year, this shows us a fundamental difference between the president and the taxpaying Americans. Barack Obama looks at these tax breaks as lost government income and not as money that the taxpayers have rightfully earned. The government feels as if it is doing us a favor by letting us keep money that we have earned and now they may be on the verge of taking that money away from us because they view this money as if it is rightfully theirs in the first place and not ours.
Many Americans have already seen their houses foreclosed on and there are many Americans who are probably still in their homes simply because of these tax deductions; if these deductions are eliminated I would expect to see even more Americans who are now faced with a much higher tax burden also lose their homes. This hardly seems like the right thing to do–but especially so in an economic downturn as dire as the one we are now facing.
Even if the committee does make these recommendations, the Obama regime will have a tough time moving this through the Congress, but we have already seen the thuggery and back room deals that were used to pass the rest of Barack Obama’s radical agenda and these Democrats cannot be trusted–they will succumb to the pressure once it is applied by the president. There is only one way to assure that these tax deductions will not be lost and that is to vote all of them out of power next week!
America's Watchtower 
While this would certainly hurt me (both in higher taxes and the next housing crash it will cause) we will have to do something like this. Social Security, Medicare and Defense are going to have to come down (all of them), and taxes are going to have to increase. I don’t like it, but our parents had a hell of party and the bill is coming due…
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This will destroy what is left of the middle class in this country, there is simply no way that this can be allowed to happen. We are talking about average Americans paying thousands of dollars more in taxes each year here, please explain to me how people who are already struggling to get by can ever afford this!
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I really like you take on the differences in viewpoint. It’s almost as if the government views itself as the owner of all wealth, and they get to decide how much to give to us.
That also beings me to a larger point; tax cuts are not spending. I can’t say that I lost money that is above and beyond my salary. Why can the government?
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Exactly Matt! It is almost like the government believes all the money should go through them first, they forget that it is the people who earn this money in the first place. They feel they have the right to claim as much as they want to!
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Well done, Steve. So much for no tax increases on the middle class. It makes me wonder if they wouldn’t like to just dole out the money the want us to have. Kind of like an allowance.
Do you have any idea how long these deductions have been in place?
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Obama is going to use semantics here. He can eliminate deductions that will amount to a defacto tax increase, but technically he can claim the he did not raise taxes. If Republicans have a good day next month he won’t get away with it.
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Just another reason why we need to get a Republican majority in one of the Houses!
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Patience, you crazy old (plastic) bag- our appreciation tsunami is coming next week
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Wrong thread… how did I do that Steve LOL
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I don’t know! That was odd. 🙂
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this is crazy they said they wanted to boost the economy with the stimulous packages i mean think bout it what do most people do with the tax return they git back each year they spend it on something they have been waiting to git all year most the time it’s a big ticket item so the majority of the returns are going right back into the boost of the economy.
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