Sorry, I'll change the order of posts shortly to put the seasons greeting back to the top but I'm afraid I've got to ruin some people's holiday cheer.
There are no news references yet but Legislators working on budget solutions announced today that they've come up with a shopping list of loopholes in California tax law that could be closed to help out in the budget crisis. The big one? Eliminate the deductibility of home mortgage interest against state income taxes. They claim it will "generate" $5 billion extra annually. Yeah idiots. And you were so effin' stupid you said this out loud. The mere mention that this proposal was considered serious just took 5% at least from the value of every home in the state. Don't bother numbnuts. It is to late. That 5% is now gone forever. It won't come back. All you can do now is save the next additional 10% by falling on your sword. I mean, here you have an industry nearing collapse and you give it a shove? What were you drinking? I'm sure some junior staffer planned this as a kind of Washington Monument Play to get a sense of urgency but they picked the third rail to piss on. Somebody get a rope.
Here's a news story in the Daily Democrat:
Legislative Analyst Elizabeth Hill's recommendations on tax breaks, which she says mostly benefit the rich and corporations, are drawing attention. She even addressed the largest, seemingly most untouchable tax break: allowing homeowners to deduct mortgage interest off their state personal income taxes.
Hill said in a report that the deduction, which exceeds $5 billion a year, no longer serves its intended purpose of encouraging home ownership. She believes there are more targeted, less costly ways to aid those who need the assistance, without subsidizing wealthy homeowners.
Without commenting on any specific tax break, Senate leader Don Perata, D-Oakland, and Assembly Speaker Fabian Nunez, D-Los Angeles, said Friday the Legislature will seriously consider Hill's recommendations.
And Steve Maviglio, a spokesman for Nunez, said closing tax loopholes - including possibly changing the mortgage interest deduction - will be part of Democrats' broad considerations of deficit solutions.
Well there's the mistakes. They think the HMID is to encourage homeownership and that it subsidizes the wealthy. Go back and read the Exurban Nation answer to these idiots.