Democrats on President Barack Obama’s financial commission are considering the wisdom of permanent tax breaks such as the mortgage deduction and corporate deferral. Calling them “tax entitlements,” senior Democratic lawmakers have argued they should be on the table for reform just like traditional entitlement programs Medicare, Social Security and Medicaid.Not that I think anything will happen. Companies like Toll Brothers have powerful lobbies. It is fun to watch, though, as people who consider themselves libertarians twist and squirm to justify this market-distorting welfare scheme for the wealthy and the people stupid enough to pay $600k for tract houses in California.
One commenter writes,
Notice that Obama does not mention the deduction for state/local income and property tax deductions. Those deductions allow people in high tax (usually Dem controlled) states to pay effectively lower federal income taxes than people who live in the more frugal states. Why should people in one state, who make the exact same income as people in another state, pay lower FEDERAL income tax?Well, yeah. Nuke that piece of welfare too. It's absurd that residents of states without state income taxes are subsidizing states that do have income taxes. End the welfare. It's the libertarian thing to do. Plus it's good old-fashioned sense and fair play.