Saturday, March 24, 2012

Nice Graphic on the Top 10 Tax Deductions individuals can take. I am STILL bothered by one I benefit from but find least justifiable...

Here is a chart showing the Top 10 tax deductions/tax credits individuals are eligible to take how much they "cost" the government in terms of foregone tax revenue.  This chart comes for a VERY easy to read report (HERE) from the Congressional Research Council.  If you want to learn more about this important issue I encourage you to look at it.

Of all these deductions/credits the one I find LEAST justifiable (it is relative and I understand if there is disagreement) is the Mortgage Interest Deduction. I have written about this before HERE.  I say this even though I am a beneficiary of this break.

I am allowed to reduce the amount of income tax I pay by deducting from my taxable income the amount of interest (in a year) I pay on the loan I recieved to buy my house.  I do understand the benefits and costs of this deduction. I just don't see the compellling reason for it.  Someone, please educate me on an objective basis, not a personal one.
Source: Wall Street Journal

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