George Will And Columnist Tax Literacy
I’ve read that a few times to make sure I am not misrepresenting George Will. It is pretty clear that he is saying that there will never be a limit on the home mortgage deduction and that he is using $500,000 by way of example. That is disturbing.
The reason it is disturbing is that there is, in fact, already in effect a balance limitation on the home mortgage deduction. Forgive me as I go geeky on you. Code Section 163(h)(2) denies deductions for “personal interest”. It includes an exception for “qualified residence interest”. A limited exception. A million for acquisition indebtedness and $100,000 for “home equity indebtedness”. The million-dollar limitation has been there since 1987 when the Tax Reform Act of 1986 went into effect.
You Should Just Hang Up On IRS Collection Calls, Legitimate Or Not
If you want to be a good citizen and a good person, you should pay the balance due if there is any way that you can. If your account is getting turned over to these collections folks though you either have a different view of tax than I do or you really can’t pay. In either case, the fact that your balance is growing because of interest likely does not matter, because people in your situation end up paying based on reasonable collection potential rather than the “correct tax”, which is of academic interest. So treat the callers from CBE Group or whichever of the gang of four happens to have your account the same way you treat the guys calling from Mumbai. But watch your mail and tell the IRS when you move.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.