Itemizing

As you prepare your income taxes, chances are you will be itemizing. That's on Schedule A where you list your taxes paid to states, real estate taxes, mortgage income paid, medical expenses, investment and business expenses. Also, charitable giving.

But the rich will not be allowed to deduct charitable gifts if they earn over $250,000. I've heard they may limit mortgage interest as well.

I wonder the damage this will do to medical research, the arts, and humanitarian efforts like food banks and Habitat for Humanity. [Food banks rely on cash donations as well as canned goods.]

You might consider it barbaric if the rich give only because they can deduct the $. You may be right but their accountants will inform them and they will possibly think twice before contributing.

If the mortgage interest is not deductible, they will pay off mortgages and deny the banks the interest income. Possibly.

I think the medical professionals vow to do no damage. Maybe a line like that should be in the President's oath. Time will tell the damage done in the first 3 months of 2009.

'til later