The
race is on … the one where those fighting for a four-year stint in the White
House see who can promise the most freebees to voters.
On
one side we have Hillary Clinton who has dangled higher minimum wages in front
of supporters. And most recently, she pledged to reform capital gains taxation
to fight those evil fat cats who make quick profits in the markets.
Will
those moves benefit Americans and the U.S. economy? Who cares! Voters only need
to think they’ll get something for nothing.
Not
to be out done, the Republican-controlled Senate pulled a rabbit out of their
hat on Tuesday by passing a package of more than 50 tax extenders.
The
majority of voters couldn’t give a hoot about most of the extensions, such as:
- Special rules for certain film television productions
- Indian employment tax credit
- Three-year depreciation for racehorses
However,
there is one that is surely aimed at buying votes: Mortgage debt relief.
Currently,
taxpayers who have mortgage debt canceled or forgiven may be required to
declare that amount as taxable income. So those who walked away from a mortgage
or had their home sold in a short-sale could be on the hook to the IRS for a
healthy chunk of money.
The
Senate’s provision will allow up to $2 million of forgiven debt to be excluded
from taxable income through the tax year 2016.
Sweet
deal for many who were conned by a slick banker, made a lousy decision, or had
a streak of bad luck.
But
like all giveaways, someone pays the price. And as usual that one will fall on
the shoulders of the rest of us taxpayers to the tune of $5.122 billion.
And
if you haven’t received your giveaway yet, be patient. The season has just
begun.
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