Some basic math

Nov 2012
41,310
11,878
Lebanon, TN
Before Reagan, the top tax rates were in the 70% plus range. However EVERYTHING was a write off. The interest on all almost all loans, not just mortgages but car loans, even credit card interest was deductible. This is where the old "three martini lunch" came from. It was all a write off. Hell even the hookers er evening entertainment was written off. Few people paid any where near the top rates. And frankly the ones I heard complaining the loudest were driving the nicest cars and had the biggest houses. What it did do was encourage people to spend that money, plow it back into the economy. Today ?? They just pay the tax and slap it in the bank or fatten up their investment fund.
Are you really that ignorant. Tax deduction on interest..

you pay a bank 20,000 in interest, you save 4,000 on taxes

if you think that is a great deal send me 20,000 and on april 15th next year I will give you 4,000 of it back. Mathmaticaly That is EXACTLY what you are proposing
 
Mar 2013
10,269
11,099
Middle Tennessee
Are you really that ignorant. Tax deduction on interest..

you pay a bank 20,000 in interest, you save 4,000 on taxes

if you think that is a great deal send me 20,000 and on april 15th next year I will give you 4,000 of it back. Mathmaticaly That is EXACTLY what you are proposing

WTF ??? I was merely pointing out how it was under the old system. ALL interest paid, whether for house, car or credit cards was deductible. That was the law back then !! I was merely pointing out that by the time people took their deductions, most of them fell out of the upper tax brackets. Very few ever paid the top rates. It's not just a matter of paying taxes versus paying interest, it was that writing off that interest moved you into a lower tax bracket. Most people were spending that money anyway. Then came Reagan who lowered the top rates and took away most of the deductions.
 
Jul 2008
19,014
12,865
Virginia Beach, VA
Are you really that ignorant. Tax deduction on interest..

you pay a bank 20,000 in interest, you save 4,000 on taxes

if you think that is a great deal send me 20,000 and on april 15th next year I will give you 4,000 of it back. Mathmaticaly That is EXACTLY what you are proposing
If you think it is the same mathematically next time you have to pay interest just tell your lender I'm only going to pay 75% of the interest I owe and keep the other 25% since that's the same mathematically as getting a tax break.