U.S. REP EMANUEL'S PLAN WOULD BENEFIT MANY MIDDLE-INCOME HOMEOWNERS!
BILL INTRODUCES STANDARD TAX DEDUCTIONS FOR HOMEOWNERS WHO DO NOT ITEMIZE
Under a plan introduced by U.S. Representative Rahm Emanuel (D-IL, 5th), new standard deductions of $250 for single taxpayers, and $500 for those filing a joint return, could be taken by those taxpayers who do not itemize deductions on their federal income tax. The Homeowners Tax Relief Act is geared to help those who have been stung by higher property taxes, and moderating home values.
Emanuel unveiled his bill at the Levy Senior Center in the Lincoln Square neighborhood of Chicago IL last Friday. Many senior citizens would be able to take advantage of the bill's provisions. He estimates that over 30 million U.S. Taxpayers cannot currently deduct local property taxes, because they do not qualify to itemize their deductions.
"Based on census data, the total amount of state and local property taxes paid in the U.S. increased by 50 percent from 2000 to 2006. Over the same period of time, inflation increased by only 17 percent. Over that time, median household income actually dropped by 2 percent," Emanuel said.
Barb Head, President of the Tax Reform Action Council (TRAC) opposes the bill. "We need reform, not relief," she said. Head favors a system in which local property taxes would be based on what the owner paid originally for his or her property, not an estimate of current market value.
View Patrick Butler's article in the December 6th edition of the Edgebrook-Sauganash Times Review, and the Chicago Sun-Times.
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