3. Further look at the Schedule A deductions and the ceiling limits placed by our
government. In order to qualify for medical deductions you have to exceed 7.5% of your adjusted gross income.
That is income from all sources less deductions allowed on the 1040, pg 1.
Consequently, if your adjusted gross income is $50,000.00 you have to spend more than $3,750.00 in order to receive a deduction. That deduction is for the amount over the $3,750.00. In other words if you spend $5000.00 you can only use $1250.00 on the schedule the schedule A since these deductions have to exceed the Standard deduction in order for it to be to the taxpayer???s advantage. The same thing applies to miscellaneous deductions (employee business expense, etc.) using a 2%
4. Also, let me point out that people that make over $150,000.00 have limitations on deductions in many areas. Don???t be misled; they don???t have that many advantages. The itemized deductions are limited as well as losses on rental property and exemption amounts. No way can they claim the child care credit either. Obama conveniently throws stuff out there but doesn???t explain it.
5. Lets fix the system to help the average taxpayer; eliminate the marriage tax penalty. It applies to paying tax on social security benefits. Singles get a $25000.00 ceiling but married couples only get $35000.00. Each partner should be allowed $25000.00 which would be double what singles get.
6. Don???t be concerned about giving Corporations tax breaks. If we don???t do it they won???t expand and will not hire. Further, they will only pass the increases to us; the consumer. Incentives bring business to an area. In so doing, jobs are created and the tax base is increased, consequently, it helps to keep real estate taxes down.









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