Sorry, but Manisha Thakor and Sharon Kedar have
drank the Obama Kool-Aid in their
Huffington Post piece. Their list of three top favorite long-term proposals from the Obama campaign:
1. UNIVERSAL MORTGAGE CREDIT that will broaden the financial benefits of homeownership - People often say home ownership is so wonderful because of the "tax benefits." Yet at present the mortgage interest deduction only kicks in if you ITEMIZE your tax return. Alas, 2/3rds of Americans take the standard deduction and thus miss out on this benefit. Team Obama supports a universal mortgage credit available homeowners who do not itemize. If you buy a home you can afford, this means YOU'LL participate in the American Dream not the American Scream.
I get the feeling that people who don't itemize of their tax returns aren't paying much taxes anyways and aren't likely to be homeowners. So good luck with buying a "home you can afford."
2. CREDIT CARD BILL OF RIGHTS that will protect consumers - Team Obama supports such steps as eliminating the universal default clauses (which allow lenders to increase your interest rate if you are late on any of your bills), prohibiting interest charges on late fees, and requiring the prompt crediting of cardholder payments. This means if you use your credit card responsibly, by paying off the balance each month on time and in full - it can once again be YOUR friend and not your foe.
Wonderful -- tip the scale in favor of irresponsible consumers and screw the credit card companies. Even though I have disagreements with some credit card companies' policies, especially those "bait and hook" practices and aggressive marketing to teenagers, I don't want to see them forced by government law. They are in the business of providing credit to those who are worthy and those who should already be paying off monthly balances. It is fair for them to penalize those who misuse and abuse the credit given to them. If such proposed legislation goes through, then it'll actually hurt consumers in receiving credit, especially for those who needs it most.
3. SIMPLIFYNG THE TAX FILING PROCESS so there are fewer headaches in April - Team Obama has also stated an intention to simplify the tax filing process, so that millions of Americans can do their taxes in less than five minutes. By enabling the IRS to use the same information it is already getting from banks and employers, taxpayers would have the option of accessing pre-filled tax forms that they can verify, sign and return. Experts estimate that this proposal will save Americans up to 200 million total hours of work and mental angst. And YOU can use that extra time to set a realistic budget & reassess YOUR asset allocation.
One word: FairTax. It simplifies the tax filing process by eliminating it (and the bloated IRS, too)!
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