Opinion

Felix Salmon

Counterparties

By Nick Rizzo
September 20, 2011

News International will pay $4.7 million to the family of the murdered girl it “allegedly” phone-hacked – Reuters

Advanced degree holders were the only Americans who saw wage growth in the last decade — WSJ Real Time Economics

70 percent of all tax filers receive no benefit from the mortgage interest deduction — NYT

“Every 2 minutes today we snap as many photos as the whole of humanity took in the 1800s.” — Gizmodo

I know of several NYC investors who are kicking the tires on Rat Island, available for under $300K — Curbed NY

Greek Finance Minister: Greece has been “blackmailed and humiliated” by EU and IMF demands — BBC

Paul Volcker: Don’t listen to the “siren song” of boosting inflation. Of course he thinks that — NYT

Larry Summers: Europe must move away from “grudging incrementalism” — Reuters

And Tony Blair reportedly visited Libya several times to lobby for JP Morgan — Telegraph

Comments
4 comments so far | RSS Comments RSS

“70 percent of all tax filers receive no benefit from the mortgage interest deduction”

And 50% of filers pay no income tax at all. The sentence could be reframed as

“Most Americans who pay income tax benefit from the mortgage interest deduction”

Posted by DanHess | Report as abusive
 

Your conclusion does not follow from statements you cite. Please see: http://en.wikipedia.org/wiki/Logic

Posted by IndyRdr | Report as abusive
 

DanHess, some significant number of people pay no income tax because their income, for income tax calculation, has all been deducted away, through things like the mortgage interest deduction.

Posted by Auros | Report as abusive
 

Yes I made some assumptions. Glad someone is paying attention!

Among the 50% who pay no income tax at all, I expect that most owe no tax because of their income level and the standard deduction and deductions for dependents and earned income etc. Few who itemize bring their tax all the way to zero by doing so. Assuming up to 9.99% of the filers who owe no tax, owe no tax specifically due to itemizing AND M.I.D. and not due to the other reasons, then it is still true that at least 45.01% of filers would owe no income tax regardless.

Then it would still be the case that of the half of filers who actually owe an income tax, a majority benefit from the M.I.D.

If some large percentage of people is bringing their tax down to all the way to zero specifically due to the M.I.D., then my statement is false, but I doubt it. The standard deduction and dependent detections are substantial and most people don’t have both a low income and an expensive house (if they own a house at all) to give a high M.I.D.

Posted by DanHess | Report as abusive
 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  •