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Lev
Lev, Tax Advisor
Category: Tax
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Tax deductions often reflect social policy, and the velief

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Tax deductions often reflect social policy, and the velief that taxpayers having a qwherewithal to pay should receive a less favorable tax treatment tha those who do not. How is this policy reflected in the diifferent categories of itemized deductions in total? Do you agree with this policy? Why or why not?

LEV :

Hi and welcome to Just Answer!
Tax deductions often reflect social policy, and the belief that taxpayers having a wherewithal to pay should receive a less favorable tax treatment than those who do not. How is this policy reflected in the different categories of itemized deductions and in the treatment of itemized deduction in total?
Just for illustration - www.irs.gov/pub/irs-pdf/f1040sa.pdf
Lines 10-11 - home mortgage interest deduction. However a credit card interest is not deductible. It is clear an implementation of social policy to stimulate home ownership.
Do you agree with this policy? Why or why not?
Generally that is a good policy. However it was part of housing bubble that pushed home prices up for many years. So I might fully not agree with that policy.

Customer:

Lev:

Customer:

Lev: You only gave one example of a itemized dedution and how it reflects social policy. Yoyr why or why not did not explain much at all either. I suppose i can use the website you gave me to try to get more information som I fully understand the questions and answers.

Lev and other Tax Specialists are ready to help you
I would be happy to provide additional example and elaborate if needed.
I will work with you as long as needed fro your satisfaction.
Customer: replied 5 years ago.

The question asked "how is this policy relected in the different categories of itemized deductions and in the treatment of itemized deduction in total. Do you agree with this ploicy? why, or whynot?"

 

There are several items listed on the schedule A ,not only mortgage interest. I do not believe credit card interest is deductible.

 

I would like you to explain a couple of other itemized deductions and explaim how social policy is reflected by each one.

 

I also would appreciate it if youcould give a more detailed answer explaining why or why not you agree with this social policy, like how it helps or hurts society.

You are correct the credit card interest is NOT deductible. I provided it as an example in contrast of mortgage interest. However if you were old enough you would recall that time ago the credit card interest was deductible - most likely it was done to stimulate credit card usage - not anymore... I think nowadays we need to reduce credit card usage.

 

Please review the answer below. Please be aware you do not need to accept the answer which is not helpful for you. If you need any clarification or additional information - please be sure to reply with explanations and elaborate if needed.
I will work with you as long as needed fro your satisfaction.

 

<table border="0" cellspacing="0" cellpadding="0" width="664">line #categories of itemized deductionsreflect social policyDo you agree with this policy?1medical and dental expensesprovide relief for those with large medical bills - mostly for retirees with high income from pensions and savingsI view this policy as government response on raising medical expenses. However deductions has a floor limit of 7.5% - thus those who cashed their retirement funds to pay medical bills are at the same time reducing deduction. While I support this policy - still think it should provide more favor for those struggling with medical needs.5state and local taxesallow exclude from taxable income either income or sales taxes - thus effectively avoid double taxation.time ago only state income taxes were deductible - because some states do not have income taxes - the policy was changed allowing taxpayers to select which deduction to claim. I fully support that change because it is fair for those who pay higher sales taxes.10home mortgage intereststimulate home ownership for middle and high income taxpayersGenerally that is a good policy, however it was part of housing bubble that pushed home prices up for many years. In additional it doesn't affect poor owner of not expensive houses who are using standard deduction because they do not pay large interest. Thus I think that policy is outdated and does not stimulate home ownership among poor taxpayers.16-19gifts to charityallows deduction to those provided charitable contributions to churches, schools, etcCharities are very important for the society and without such policy many charitable organization simply would not survive. While the policy is important to provide tax relief for those supporting charities - it is even more important for charities themselves to provide a flow of cash and other resources - that is why I fully support this policy.

Lev and other Tax Specialists are ready to help you
Hi Lisa,
I appreciate your acceptance and a positive feedback.

I just notice your previous negative report and do not want to leave you unsatisfied.

Please be aware that you are not required to accept the answer if you are not satisfied and the answer has no value for you.


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Thanks you for considerations.