The Reagan Administration’s new tax plan would allow a tax deduction for interest on a second home, but not for property taxes, even on a first home. This smacks of preferred treatment for the most fortunate!
Those who have just bought a first home, or had planned to buy in the future, expected a deduction of state property taxes as well as mortgage interest to help them afford to be a homeowner. Without state property-tax deductions, many will be in financial trouble.
Home sales will decrease and foreclosures will increase. This does not jeopardize second homeowners; they already have a roof over their heads. Of course realtors and builders marketing vacation property don’t like the original tax proposal that threatens loss of interest deductions on second homes. But they represent only a small segment of the population. The Administration should disregard this interest group’s concern with luxury.
If the government is going to consider large segments of the population, instead of a vocal few, then it should consider persons with greater need, such as those who only want one home. Consider renters, who under the new tax proposal are to lose interest-payment deductions for things as necessary as automobiles and other items. Unlike the wealthy, they cannot make payment in full. This group is, by far, in the majority.
We want a government “by the people, for the people.” Not by lobbyists for special-interest groups. The tax overhaul should favor the “have-nots” instead of the “haves.” It is here that the level of need is higher, not with those owning a vacation home.
Also, I believe a minimum tax for persons or corporations who legally manage to avoid taxation is just and should be included in any new tax law. Shouldering the national debt should be shared by all.
Now is the time to do what is right and fair to everyone, whether they have a strong or weak voice.
MR. and MRS. T. L. COOK