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re: How long will it take for US Govt to make income tax changes re: interest rates?
Posted on 6/15/22 at 8:49 pm to Turf Taint
Posted on 6/15/22 at 8:49 pm to Turf Taint
quote:
If interest rates rise to point of unhealthy demand destruction, might the gov’t provide tax incentives to offset the cost of money to the economy.
If interest rates got to the point where the economy needed to be stimulated, then the Fed would lower rates.
Why would congress go through the trouble of changing tax laws?
Be honest with yourself, you didn’t think much on this, did you?
Posted on 6/15/22 at 8:50 pm to Turf Taint
quote:
I thought everyone on MT had an income level where the break even point between itemizing and standard deduction required some analysis
Income level has little to do with the ability to itemize. If I’m a W2 employee that makes $1MM a year and I have little itemizable expenses, I’m going to take the standard deduction.
Posted on 6/15/22 at 9:05 pm to iAmBatman
If you are W2 EE who makes $1MM per year and has few itemized deductions, it is time for new CPA.
Posted on 6/15/22 at 9:11 pm to Turf Taint
quote:
If you are W2 EE who makes $1MM per year and has few itemized deductions, it is time for new CPA.
Do you think a CPA is just magically going to get you more deductions that aren’t there?
Posted on 6/15/22 at 9:36 pm to iAmBatman
The premise in original post is that Govt gives tax incentives for more options and higher interest deductions (exceeding value of std deduction for some).
In this specific point, the high income W-2 EEs would have the capacity for and be encouraged to hold more debt, ie more deductions.
I’m in the ‘what if’ space…if Govt gave tax incentives
In this specific point, the high income W-2 EEs would have the capacity for and be encouraged to hold more debt, ie more deductions.
I’m in the ‘what if’ space…if Govt gave tax incentives
Posted on 6/15/22 at 9:43 pm to Turf Taint
quote:
In this specific point, the high income W-2 EEs would have the capacity for and be encouraged to hold more debt, ie more deductions.
Only mortgage interest and student loan interest are typically deductible. You aren’t going back to school because the government changes tax law.
The problem is your premise in general. Why would the government try to stimulate the economy by changing tax laws (which have to go through congress which lately isn’t in the habit of doing much of anything) when the Fed could just lower rates and achieve the same thing, but faster and more effectively?
And the government gives those tax breaks to encourage home ownership or higher education, not to to give people a tax cut because the economy is poor.
This post was edited on 6/15/22 at 9:45 pm
Posted on 6/15/22 at 10:02 pm to iAmBatman
Clear, thanks.
Incentive to offset an effect of high interest rates, not to serve as monetary policy. Hear your good point.
Perhaps I am thinking of a different Govt. Like one that would consider 21% windfall tax on oil companies (discourage supply) to then offer consumer price rebates (encourage demand), exacerbating the aggregate demand/supply imbalance and undermining the Fed’s attack on purchasing power by tightening the money supply and raising interest rates.
Incentive to offset an effect of high interest rates, not to serve as monetary policy. Hear your good point.
Perhaps I am thinking of a different Govt. Like one that would consider 21% windfall tax on oil companies (discourage supply) to then offer consumer price rebates (encourage demand), exacerbating the aggregate demand/supply imbalance and undermining the Fed’s attack on purchasing power by tightening the money supply and raising interest rates.
Posted on 6/15/22 at 10:09 pm to Turf Taint
quote:
Incentive to offset an effect of high interest rates, not to serve as monetary policy. Hear your good point.
But why?
quote:
Perhaps I am thinking of a different Govt. Like one that would consider 21% windfall tax on oil companies (discourage supply) to then offer consumer price rebates (encourage demand), exacerbating the aggregate demand/supply imbalance and undermining the Fed’s attack on purchasing power by tightening the money supply and raising interest rates.
You’re confusing one person for the 3 branches of the government. Maybe you need a civics lesson, not an economic one?
Posted on 6/15/22 at 10:33 pm to iAmBatman
quote:
Maybe I need a lesson on toning down my caustic tone?
Please don’t. It will take you far in life.
Posted on 6/15/22 at 10:38 pm to Turf Taint
People that post idiotic ideas should be told they’re being idiots.
Give your post a little deeper thought next time and hopefully you won’t have to go through this again
Give your post a little deeper thought next time and hopefully you won’t have to go through this again
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