No. When you purchase a house, you are paying four times what you should be paying due to the cheapening of the dolar and the interest. Houses are not becoming more scarce. My grandfather bought a house in 1939 for 5600 and it was 5 times as large as the dinky towhouses we pay 450,000 for today. It's an enormous fraud by the international bankers. The Federal reserve is NOT an agency of the United States of America. It is a private corporation that has never been audited! The federal reserve is unConstitutional, indeed, anti-Constitutional. The Constitution of the United States states clearly and concisely that Congress shall have the sole power to coin money and regulate the value thereof. In February, 1913, the 16th Amendment was passed. In December, 1913, the Federal Reserve Act was passed. The "fed" creates money out of nothing and charges the United States government interest on the mickey mouse "money"!!!
So a small income tax break as compared to paying four times too much for your dwelling.
Yes, why does the federal government subsidise how some people spend their money?
the Majority of Itemized deductions should be done away with, they have nothing to do with Income.
Now the miscellaneos deductions have some merit as they are Items that you spend, pertaining to making the income and really I can't see why there is a 2% AGI reduction in those.
Then the system could go to alot higher Standard deduction or just do away with it entirely and reduce the tax brackets themselves, then you would not be punished or rewarded for spending what you earned a certain way.
It is viewed as a social good to encourage home ownership. Why are medical deductions (over the percentage income limit) allowed? Why are personal exemptions or charitable deductions allowed? The list is endless. The feds should be thinking about cutting spending vs increasing revenue. Unfortunately, Congress puts on blinders and does not consider the latter.
Your stupid and I'll explain why... Yes you can claim your interest, because you pay tax on rent obtained, Capital growth and every $ you make in a property.
Home owners pay more tax then they get breaks from interest.
Every house purchased pays stamp duty to the federal Government, Every house sold pays capital gains tax.
How many houses are bought and sold every day????
How many times can you tax a house on purchase???
If a house is 100 years old its probably been bought and sold 30 times. How much has that one house made the government???
And all they have to do to make this fair and legal is allow interest rates to be tax deductable... think about it.
YOU aren't paying anything, they let us take it off our income so we pay less taxes. You pay nothing more because of it! If you're so jealous, why not buy your own house? Now's the perfect time to get a great deal on one!
government should not charge tax at all then how state will earn the money to run the country .The solution is very simple.
A Method to Address Economic Recession,
Remove Poverty, Terrorism, Improve Law and Order,
Reduce Drug Abuse, Inflation
And Taxes in an Interest Based Economy.
By Dr. Niaz Ahmed Khan
• Bedar Pakistan, www.bedarpakistan.com.pk
Abstract
I have developed a new financial instrument which will be much more valuable than the bonds or the treasury bills government sells in the open market to raise much needed funds to run the country .These are all interest based instruments and can only be used by institutions. The instrument I am proposing is without interest and will be used by every body to purchase goods and services in the government and private sector resulting in up to 60% reduction in prices of every thing this is why these will be massively bought up front in large amounts in the shortest period of time of one month to run the country for at a year and many times more by the end of the year.
Introduction
The world is facing many challenges with no solution in sight.
The main cause of all these ills is the POVERTY.
1. Do not borrow the money with interest. Issue bonds which can be used by everybody rich or poor and and are not debt to the state or any body else so there is no question of interest.
How: I take the example of USA in which the run away foreclosure and unstopable recession is making the life of leading economists miserable as they are responsible for looking after the country economy . Unfortunately they know only three three things ,the interest rate ,inflation rate and the exchange rate by reducing one or the other they play and experiment with he economies of the different countries and this why the biggest economy of the world is in great mess. Yet this country and other developed countries hire all the top noble prize winners economists to handle their economic situation.
Money is being borrowed by selling treasury bills and the interest based bonds. The suggestion is to sell interest free bonds.
EXAMPLE: One dollar will by buy 5 bonds on the condition that the amount should be at least $100000 or multiple of it. Fewer amounts will have rate of four and three. This discount period is only for one month at the start of the implementation of this system. In the second month the rate will be 4 and for rest of the year rate of 3 will apply for the same amount
WHERE WILL THESE BONDS BE USED? 1. All state controlled services and commodities. EXAMPLE: A bill of (any service or Commodity) $100 can be paid with 200 bonds and there will be no exception to this rule .A NET DISCOUNT OF 60 % on all the services and commodities under government control.
A simple formula a bill in dollar x2 is the number of bonds needed to pay the bill. Price in bonds will not be less than the cost price but without the direct indirect taxes and the duties which are part of the present price making the present price very expensive.
It will attract at least one hundred million people to take this opportunity as early as possible and if one is sure of making 100% profit within 30 days there will be many more to join this race.
RESULT - Government gets at least $10 trillion within a very short period of time of few days and much more by the end of the year .THIS IS NOT A LOAN AS STATE HAS SOLD BONDS( Commodity) WHICH IS AN ALTERNATE CURRENCY AND DOES NOT CARRY ANY INTEREST.This is an internal instrument with zero value outside the country. One immediately thinks that who will bear the big loss to the state which can not be more than the total year budget of $6 trillion . The state collects this amount in one year with all the taxes and the duties but the bond price is simply a cost price without any kind of tax or duty
WHO WILL SELL THESE BONDS? State will float tenders to select a private agency (USMF) UNITED STATES MONITORY FUND JUST A NAME GIVEN TO THIS ORGANIZATION with the lowest bid WHERE AS second third and forth bidders will be auditors of USMF . This agency will employ at least 20 million unemployed on 10% commission basis but without any salary. These agents will have to pay $500 as an annual fee to USMF so that it can build the infrastructure for the sale of bonds. Each agent will have a quota of $300000 per month and they will be allowed to sell their whole year quota even in one day and this will only materialize if the agent shares his commission with the would be buyer. Greater the share of commission to investor quicker the sale of bonds. This investor or the buyer will sell these bonds at the same rate of 5 per dollar and his bonds will sell very quickly and he will repeat this every day as long as demand lasts as there is no condition of the amount of money to purchase the bonds. In this way even the poorest person will get the same rate as the investor except for the commission which the investor takes from the agent and earns almost 100% profit by only investing only$100000 . NOW THINK HOW MUCH FUNDS STATE HAS ACCUMULATED WHICH IS Much more than the few years of budget in matter of only one month.
FLOOD GATES OF MONEY AND THE TURNING POINT.
This is only the first flood gate of money and there are seven of these yet to open so at the end of 30 days or even much earlier the government declares tax free country for ever. With the removal of all kinds of direct and indirect taxes and duties the price (of oil electricity telephone and all commodities under government control) is almost 60% less than before as these are being purchased by bonds (which is the cost price) and not with dollars. With the result the production cost of every thing will come down tremendously.
SECOND OPTION
State also offers ten million dollar duty free if one deposits dollar100000 which are non refundable .This brings out all the unused and the black money which state WAS NOT ABLE TO GET BEFORE .
This was the second flood gate of money which is even bigger than the first one and the exact amount is impossible to asses unless the system is implemented.
In order to provide cheap bonds through out the year government offers three types of registration fees.
1. Pay $100000 in the start of the year and get the rate of 5 for the rest of the year and this will suit the professional’s and salaried person’
2. Pay $10000 yearly and get 20000 new bonds at the rate 5 every month but one has to collect 10000 bonds (equal to the fee) and exchange it from USMF with new bonds so that these cannot be used again. Higher the registration fee more the entitlement of cheap bonds. This registration will suit any small time business who will sell his product cheaper provided 15% bonds are also paid with rest of cash money by the customer SEE THE NEXT REGISTRATION FOR FARTHER EXPLANATION 15 %BONDS .This will apply to all goods in private sector and does not apply to the government sector. This is a big incentive to accept bonds in the private sector as the business accepting more bonds will have more business than the trader not accepting the bonds so the bonds market will multiply and there will be a constant need for bonds in the open market.
3. Third type of registration will be of $100000 which will entitle the business to sell its products through USMF. The value of merchandise sold through this source will help the business to get the 5 bonds per dollar equal to the amount sold or opt for the duty free option. But with one condition of surrendering 15% bonds at each sale in dollars
EXAMPLE; MERCHANDISED SOLD THROUGH USMF $1000. BONDS SURRENDERED Will BE (15%) 150 ARE DEPOSITED IN STATE ACCOUNT TO BE SOLD AGAIN SO THE CYCLE OF BONDS IS ESTABLISHED .A receipt of bonds surrendered is obtained from USMF for evidence of sale of merchandise and this receipt will entitle the traders to get cheap bonds or the duty free option through out the year BUT THE SAME RECEIPT CAN ONLY BE USED ONCE.
WHAT IS THE BENEFIT TO BUSINESS? 1. CHEAP BONDS will be available with duty free option through out the year and this will bring the cost production farther down which willhelp the industry to multiply. The quota which can be sold is ten times the amount of registration and not more unless the registration fee is increased. Now every business will opt for this registration in order to reduce the cost of production. These 15% bonds the business will get back through a chain of dealers sub dealers and ultimately the customer will pay this bond portion as he will get the end product very cheap because of tremendous cut in the cost of production by the factors already described.This will replace the GST or the VAT or the two price system seen all over USA. Almost every body will sell their products through this channel as it will be much costlier to sell any thing out side this system as cheap bonds and duty free option are not available.
According to rough estimate at least $100 trillion transactions are carried out every day in US and at each transaction 15% bonds will be surrendered, the price of 15 bonds is $3 .So 3% of 100 trillion will be $3 trillion which goes into government account without any compulsion every day (UNBELIEVABLE) this is the third flood gate of money AND IS CALLED THE GOLD MINE
Now the state is sitting in the driving seat and all the money in banks of private sector have transferred into government account and banks are no more the lenders but are borrower from the state which is the only source left .So the state will invest in business sponsored by banks or reputable institutions with sound feasibility study checked by the state bank.The state will offer to invest 80% and the bank will bring investor who is willing to pool rest 20% This 20 % will be deposited in the bank and the bank will supervise the business, running expenses will be given to the investor from its share of 20%. There will
The government charges us taxes on interest earned. This is in effect a negative interest earned. In order to keep balance, if you were to remove deductions on interest, you could also remove taxes on interest.
Ideally, the tax system should be used to provide for means to fund government operations. It has been so muddled with efforts to use it to stimulate certain behaviors and financial decisions. Home ownership does add stability to families and economies and encourages US industry. As such it is incentivized by tax breaks.
The correct solution is to eliminate any and all deductions and incentives and abolish the IRS and fund government operations through the Fair Tax.
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