What about this for a tax cut?

[ewagner]

About 10 or so years ago, Credit Card interest was tax deductible. Would that be a savings for most?

Would it also be an economic stimulus?

good/bad/indifferent points?

[trotsky]

1. A good idea, but not in today's culture.

We're already up to our eyeballs in consumer debt - I fear this would only exacerbate the problem today. When it was eliminated (under Reagan - try 20 years ago), people just didn't have that much debt.

[ewagner]

2. memory is the second thing to go

...and I can't rmember the first...

20 years ago? Wow...didn't realize it had been that long.

I know consumer debt is at an all-time high, but isn't that (consumber spending) the only thing that will pull us out of this mess?

Discussion welcomed.

[trotsky]

3. One huge positive:

It certainly wouldn't benefit the wealthy, who have reaped (and raped) everything else lately and who always pay CASH!

[forgethell]

5. But that's the whole point

isn't it? there is too much debt. If people were able to deduct the interest, they would have extra money to pay down the principal. Of course, the occasional idiot would just go deeper into debt, but he probably would have anyway. Some people cannot be helped.

I'm for it.

[trotsky]

6. And that's what I'm afraid of.

I think those idiots would be a lot more than "occasional." And I wouldn't call them idiots, either. People who mean well, and want to get ahead, but just don't fully understand credit. That, and the predatory credit practices of banks.

[forgethell]

8. Well, having been there I can't

disagree about the predatory practices of the lending institutions. But somehow I can't quite make the connection between giving people more money and pushing them into debt. Two separate actions. More is NOT less.

And idiot, in this instance, refers to someone who does something stupid. I am going to assume that they are smart enough to know they are in trouble and get some of the help that is out there for people in financial trouble. It takes effort to get out of debt, but it is worth it.

[beyurslf]

4. I can't believe that was EVER tax deductible.

Why would we encourage credit card debt? Sounds like it was a great thing to get rid of and let's not bring it back.

[54anickel]

7. Lots of stuff used to be tax deductible,

I remember saving up all the sales receipts, states sales tax paid was fully deductible on fed, then it was limited to anything over X% of AGI. Used to be all medical and job related expenses were too. That's one thing that makes me laugh about those TV ads for tax preparers with the guy bringing in the shoebox full of receipts. Folks just don't do that anymore due to the limitations on the %of AGI. Seems like such a farce - "We'll go through every receipt to make sure you get all the refund you're entitled to". :eyes:

[forgethell]

9. The deduction was eliminated

as part of a deal to lower the tax rates. then the rates went back up, but the deduction stayed gone. Just part of the Republican/Democrat beaucracy conspiracy to pick the pockets of the American people so that they can distribute the largess and ensure their own re-election to office.

Give back the deduction so that people can use the money to GET OUT of debt.