Comments on: Counterparties http://blogs.reuters.com/felix-salmon/2011/09/20/counterparties-426/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: DanHess http://blogs.reuters.com/felix-salmon/2011/09/20/counterparties-426/comment-page-1/#comment-31140 Wed, 21 Sep 2011 15:50:18 +0000 http://blogs.reuters.com/felix-salmon/?p=10046#comment-31140 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.

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By: Auros http://blogs.reuters.com/felix-salmon/2011/09/20/counterparties-426/comment-page-1/#comment-31101 Tue, 20 Sep 2011 20:23:24 +0000 http://blogs.reuters.com/felix-salmon/?p=10046#comment-31101 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.

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By: IndyRdr http://blogs.reuters.com/felix-salmon/2011/09/20/counterparties-426/comment-page-1/#comment-31097 Tue, 20 Sep 2011 19:48:54 +0000 http://blogs.reuters.com/felix-salmon/?p=10046#comment-31097 Your conclusion does not follow from statements you cite. Please see: http://en.wikipedia.org/wiki/Logic

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By: DanHess http://blogs.reuters.com/felix-salmon/2011/09/20/counterparties-426/comment-page-1/#comment-31084 Tue, 20 Sep 2011 15:59:00 +0000 http://blogs.reuters.com/felix-salmon/?p=10046#comment-31084 “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”

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