Kind of Blue
Phil Angelides and Dianne Feinstein are lining up in opposition to new taxes on the wealthy? President Bush announced today that he would propose to cap mortgage deduction at $350,000, or so. That would mean multi-million dollar homes would no longer be huge tax deductions. But the plan has drawn criticism from Democrats: Feinstein says: “The proposal by the President’s Tax Panel today to cap mortgage deductions at approximately $350,000 would be devastating for states like California where real estate values have skyrocketed and affordability is at its lowest levels. This proposal does not simply affect a small portion of wealthy homeowners, it would impact nearly the entire State, and worse, those who are living paycheck to paycheck may be forced to sell their homes." Angelides, calling it "Bush Blue State Tax Increas" says: “The Bush panel’s recommendations are a double-barreled blast aimed squarely at California and the middle class...These recommendations are good for Texas, but bad for California." They are righ about one part: California would be harder hit due to higher real estate values. But it is odd to see Democrats arguing against higher taxes on wealthier homeowners. |
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