class war
class war
20 comments
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You can't deduct your mortgage from your taxes, only the interest. And only on mortgages related to your first or second home. From irs.gov
This part explains what you can deduct as home mortgage interest. It includes discussions on points and how to report deductible interest on your tax return.
Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). The loan may be a mortgage to buy your home, or a second mortgage.
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There's actually a few types of interest, including student loan, that can be deducted.
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Another important thing to note is that you only benefit from this if you have so many itemized deductions that you can do better than the standard deduction. The mortgage interest alone isn't going to do that in a vast majority of cases. Since legislation in 2017, a lot of the tax advantage of owning a home was reduced.
The OP is wrong on every conceivable level.
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Look look look as a home owner with a mortgage, I think you're looking at this all wrong.
You should be furious and demanding correction French style.
It's super wrong and political action is desperately needed
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I wish I could up-vote more than once...
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Ignorance defined. Mortgage interest is completely different than rent.
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I spent way too long wondering what it could possibly mean to deduct your mortgage from your rent.
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Don't forget to deduct your home office if you work from home.
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Small business owners can deduct their home office, employees cannot
Source: https://www.irs.gov/newsroom/how-small-business-owners-can-deduct-their-home-office-from-their-taxes -
I was just officially classified as a remote employee in my company’s HR system, even though I’ve technically been working more at home than in the office since the pandemic. How exactly do I measure how much I should be deducting because of my home “office”?
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Unfortunately that deduction is for small business owners, not employees.
Source: https://www.irs.gov/newsroom/how-small-business-owners-can-deduct-their-home-office-from-their-taxesMore context: I'm a full-time remote employee :')
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20 comments
In the US you can deduct the mortgage interest, which is even more of a benefit for the wealthy than the mortgage as a whole would be since the deduction decreases the longer someone stays in a home.
Social security being a flat percentage with a cap is also a form of class war.
Investment income being taxed less than employment income is another form of class warfare.
Why the hell do you pay more in taxes than Elon Musk?
Are you talking about capital gains tax?
First, let's be clear, the reason the rich pay little tax doesn't have much to do with the capital gains tax rate being lower.
Now the reason for the lower rate (at least ostensibly) is that while income is earned at a point in time, capital gains happens over large amounts of time. Therefore often a big part of the gain is inflation. Let's imagine you bought a house for $100k and 20 years later you sell the house for $140k. Over that time inflation has been a steady 2%.
Due to inflation $148k is now worth what $100k was worth 20 years ago. But when you sell you have to pay tax on the $40k profit even though you actually made a loss?
Lower capital gains rates are meant to adjust for this. Basically saying we understand part of the gain is inflation, so let's call it half inflation and half profit and we'll account for this by setting the capital gains rate at half the income tax rate.
Remember companies (that you might have shares in) or yourself as a land lord are (ostensibly) paying tax on profits as you go. Capital gains tax is in addition to this.
This comment is already long enough so I'll leave the conversation on whether this stuff is true in practice as an excercise for the reader, but it at least starts from a sensible place.
At least where I live (not the US), if you're day trading stocks or flipping houses you'll pay income tax not capital gains tax (ostensibly 😆).
There's nothing stopping people in the lower classes from investing.
If minimum wages are so low and working hours so long that people are too busy with their day jobs and/or don't make enough money to even think about the stock market, let's focus on fixing that rather than going after the stock market.
I don't follow why the mortgage interest is better for the wealthy than the total mortgage amount?
In the USA afaik it is only the interest which is tax deductible.
Not sure I get why social security being flat with a cap benefits one class over the other.
Sure, once I meet the max contribution then my withholding goes down and my take home increases. But anything in excess of the max contribution doesn't affect social security payouts after retirement --- if you put in more, you get out more, and if you're capped in your contributions then you're also capped in your withdrawals.
Is it a paternalistic program? Sure, it's essentially a forced retirement plan. Its implementation isn't perfect, but I'm not sure I'd call it class warfare.
When wealth is concentrated because wages don't increase with productivity, the wealthy are paying less than their fair share of taxes to society with a flat percentage that has a cap.
Look at it this way, if there is 1 million dollars taxed at 3% and there is no cap it doesn't matter who gets what, $30k total is collected. If there is a 100k cap and one person takes in 500k and 10 people take in 50k in income apiece then only $9k is collected and the one taking in 500k is putting in the same amount as everyone else. They are also less in need for social security retirement savings because they can easily squirrel away more in savings.