Reagan’s Tax Proposals
If I have a $100,000 home my down payment of 20% will be $20,000. My mortgage of $80,000 on 13% interest will be $10,000 a year. That amount I can deduct from my income, which will save me if I am in a 25% bracket $2,600 a year on my home interest.
If I have a $500,000 home my down payment of 20% will be $100,000. My mortgage of $400,000 on 13% interest will be $52,000 a year. That I can deduct from my income, which will save me if I am in the 35% bracket $18,500 a year only on my home interest.
If I have a $5-million home my down payment of 20% will be $1 million. My $4-million mortgage on 13% interest will be $520,000 a year, which I can deduct from my income tax, which will save me if I am in the 35% bracket $182,000 a year only on my home interest.
If I were a movie or a record star a big investor or a wealthy person and I could afford a $10-million home my savings on my income would save me $364,000 a year if I am in a 35% bracket.
If I can not afford a home I cannot deduct one dime.
EVA ANIEL
Los Angeles
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