A suggestion by some Democrats that eliminating tax deductions for mortgage interest and charitable contributions could be part of a fiscal cliff deal is raising the specter of significant harm for the middle class, according to some experts.
And they are saying the church is at risk as well.
Some believe that President Obama may support eliminating these deductions despite repeated assertions during his campaign that he plans to protect the middle class.
The Tax Policy Center argues that households earning more than $250,000 (defined as wealthy by the Obama administration) realize an annual tax savings of around $5,460 from taking advantage of their mortgage deduction. Compare that with the approximate $91 annual tax savings for households making less than $40,000 annually. Experts also argue that earners making $250,000 per year will get hurt more than low-income earners.
Arnold Ahlert, a former advertising executive turned columnist for Jewish World Review and FrontPageMag.com, sees the conversation about changing the mortgage deduction as just another way to pander to the Democratic base, especially those who don’t own homes. He addresses many of those issues in a recent column titled “The Deduction Cap Trap.”
“In my opinion, populism is the reason behind all the hubbub. There are lots of people who don’t own homes at the lower income level and I think the White House is just trying to take another swipe at the well to do,” Ahlert told The Christian Post. “Basically, I think the left is interested in saving their ideology and programs and their willing to take the country down in the process. This simply helps them achieve that goal.”
