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In the US they’re getting fewer and fewer. Property tax + mortgage interest combined is now capped at $10k. This was no doubt to punish blue state residents whe
by fnord77 5y ago
In the US they’re getting fewer and fewer. Property tax + mortgage interest combined is now capped at $10k. This was no doubt to punish blue state residents where property values are higher
- midasuni 5y agoMortgage interest relief was abolished in the U.K. decade a ago. Do you get relief on renting too, or just mortgage? Either way seems a long way from business which gets to remove 100% of the cost of rent, maintenence, and pretty much anything else. If I employ a gardener to mow a lawn because my time is more valuable spent inventing a cure for cancer, I can’t deduct that. It makes far more sense from a personal perspective to work less and do a given job myself (lowering GDP and productivity, a lose/lose situation). Won’t say 35% marginal tax, I’d have to do $1000 overtime to pay $650 to put in a new shower, and the builder would only keep $422. It might take him 2 hours and me 6 hours, but if it takes me 10 hours to earn that $1000 extra it’s worth doing it myself and denying the world the cure for cancer I could have developed in that time. A business on the other hand will just take the extra $1k revenue and offset the cost of the plumber against the revenue before paying tax.