Compliant 2 - Student Loan Interest
Another reason I was interested in playing with Traci's taxes, was that I was trying to figure out exactly how much of the money we pay in student loan interest we get back.
I was, however, dismayed to learn that there is still a cap of $2,500 that you can claim in interest paid on student loans.
I pay more than $2,500, why can't I claim more? I'll give my arguments.
The government employs/contracts social scientists and economists to study certain problems and help devise ways to incentivize people to do what the government wants -- Yes, for right or wrong, we are manipulated by the government.
For example, mortgage interest. It's a proven fact (many, many times over), that home ownership promotes a productive society -- increased productivity, lower crime rates, better educated populace, etc... Therefore, we are allowed to deduct our interest mortgage to help offset the cost of our home.
In the same vein, they also allow us to deduct interest paid on student loans, because a better educated populace helps decrease the crime rate (even more so in the area of violent crime than other areas), promotes productivity, raises GDP, increases the tax base, etc...
Here's my argument. The better educated the populace, the more positive an affect there is in the areas mentioned above. Higher educations cost more money -- a law degree is considered a doctoral degree (Juris Doctorate means doctor of law). Everywhere you read about post-high school education, costs are constantly increasing. Help offset these costs by letting us deduct all of our student loan interest.
For the past 4 years (I've only been paying these loans for 4 years), I've only been allowed to deduct the maximum of $2,500. At that level, it will be several more years before I'm under that cap.
Mr. Bush (I know you read my mail and my blog, thankfully you now need permission from the FISA court to tap my phone), either eliminate the cap, or raise the cap.
P.S. You will get 15% of what you pay in student loan interest back in taxes
I was, however, dismayed to learn that there is still a cap of $2,500 that you can claim in interest paid on student loans.
I pay more than $2,500, why can't I claim more? I'll give my arguments.
The government employs/contracts social scientists and economists to study certain problems and help devise ways to incentivize people to do what the government wants -- Yes, for right or wrong, we are manipulated by the government.
For example, mortgage interest. It's a proven fact (many, many times over), that home ownership promotes a productive society -- increased productivity, lower crime rates, better educated populace, etc... Therefore, we are allowed to deduct our interest mortgage to help offset the cost of our home.
In the same vein, they also allow us to deduct interest paid on student loans, because a better educated populace helps decrease the crime rate (even more so in the area of violent crime than other areas), promotes productivity, raises GDP, increases the tax base, etc...
Here's my argument. The better educated the populace, the more positive an affect there is in the areas mentioned above. Higher educations cost more money -- a law degree is considered a doctoral degree (Juris Doctorate means doctor of law). Everywhere you read about post-high school education, costs are constantly increasing. Help offset these costs by letting us deduct all of our student loan interest.
For the past 4 years (I've only been paying these loans for 4 years), I've only been allowed to deduct the maximum of $2,500. At that level, it will be several more years before I'm under that cap.
Mr. Bush (I know you read my mail and my blog, thankfully you now need permission from the FISA court to tap my phone), either eliminate the cap, or raise the cap.
P.S. You will get 15% of what you pay in student loan interest back in taxes
Labels: complaints
posted by Rich B | 8:30 AM
4 Comments:
There are some (Not me) who would argue that Lawyers are actually below other college educated people and should not be allowed to deduct any interest since some of them sue the government among others in hopes of getting rich.
I see a compromise... I can compromise. In the spirit of bi-partisianship...
- If a lawyer makes more than X, then no interest deduction.
OR
- Do a graduated scale. You make X, you can only deduct Y; you make A you can only deduct B.
OR
- You work for the public sector, you can deduct all of you interest.
Trust me, working as a lawyer in the public sector, you will NOT be getting rich anytime soon.
Pick any level of income you want to the first two, and trust me, she's under it.
I hear eating stuff greatly improves quality of life. Can I deduct my Weis Markets receipts (after coupons and club-card savings of course)?
One obstacle at a time. I say subscribe to the Bill March philosophy (did you ever meet Bill)?
He thought paying taxes was optional, and chose not to.
Of course, I've always described Bill as an Idiot-Savant... Heavy on the idiot and light on the savant.
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