Tax Reform. We keep hearing that. But how confident are you that Congress can come together for tax reform when they couldn't come together on the debt ceiling -- which lead to a downgrade in our rating.
And even if they start discussing tax reform the outside groups (special interests, lobbyists) will surely have their say or objections. We keep hearing about making the tax code more simple. But we also here about doing away with or reducing deductions, exemptions, or credits for the wealthy but no specifics. I, for one, think it is MORE SIMPLER to allow all taxpayers to take all their deductions and exemptions instead of reducing them by a % based on the taxpayers income. So I would rather increase rates than make the code more confusing.
For instance, the net capital loss a taxpayer can take , regardless of filing single or joint, is $ 3,000.-
This amount has never been changed for indexing. So possibly increase it to $ 5,000.- or possibly
$ 3,000.- for single and $ 6,000.- for joint filers.
Mortgage Interest: currently allowed to take mortgage interest on a max of $ 1 million mortgage.
Possible changes if any: only mortgage interest on your principal (main) residence and not on any second homes.
Medical Expenses: currently the first 7.5% of your AGI is not allowed to take so for example if your AGI (adjusted gross income) is $ 50,000 then your first $ 3,750.- of medical expenses cannot be taken.
Possibly eliminate this %.