What’s the difference between a tax hike and the elimination of a deduction? In politics, everything. For the taxpaying public, the impact is the same. We’re talking words or nomenclature.
It appears that some legislators in Sacramento are considering eliminating the mortgage interest deduction for state tax returns. While I don’t expect that to pass, I do believe we’ll see a few tax hikes when a budget finally passes in Sacramento this year. Please don’t ask me what they’ll be—it’s way too early for that—but do realize that Democrats don’t want to cut any programs. This editorial in the Los Angeles Daily News sums up the problems with eliminating tax deductions.