Bankruptcy USA - Only idiots pay their bills
- Don't pay your mortgage. Big Government will be happy to pay it for you with other people's money.
- But better yet, the government will make sure you owe no taxes on the free money you get. What a deal!
- A bi-partisan bill to extend the mortgage relief tax break through 2014 has 17 co-sponsors — 11 Democrats, four Republicans and two independents.
A Giant Marxist Ponzi Scheme - Homeowners who obtain free government paid for reductions in their mortgage debt face a new obstacle starting next year — a bill for taxes on that aid.
A special exemption of as much as $2 million per household in principal reduction and other aid from banks, in place since 2007, is set to expire at year's end. The political hacks are in a bit of a panic. We can't have voters actually pay the debts and taxes they owe. That is crazy talk.
Let's tax others, borrow or print the money to buy these people's votes.
The Los Angeles Times reports the expiring tax provisions — most notably the President George Bush-era tax cuts — and the large automatic government spending reductions looming at the same time that are referred to as the fiscal cliff.
Leftists and Socialists in both parties are worried that the exemption will disappear just as thousands of homeowners are receiving large amounts of mortgage debt relief from the nation's five largest banks as part of a national settlement of foreclosure abuse investigations.
"The expiration of that provision is a hidden time bomb," said Rep. Jim McDermott (D-Wash.).
He and other lawmakers are expected to push for an extension of the special tax exemption when Congress returns from summer recess next week, but even with bipartisan support it's unlikely to get a vote before the November election.
"We are actively looking for opportunities to extend the provision, and we would hope we could do that well before the end of the calendar year," Housing and Urban Development Secretary Shaun Donovan said.
Mortgage debt that is forgiven by a bank as part of a principal reduction, short sale or foreclosure must be reported as income by the homeowner and is subject to taxes. The lender reports the amount forgiven on a special Internal Revenue Service form.
But in 2007, Congress enacted the Mortgage Forgiveness Debt Relief Act to buy the votes of homeowners with other people's money. If the debt is forgiven because of a drop in a home's value or a decline in the owner's financial condition, up to $2 million of the relief for couples filing jointly is exempted from federal taxes.
Felonious Munk Presents: Stop It B! OBAMA PAY YOUR &*%$#% BILLS
Felonious Munk speaks on the economic state of America and why we shouldn't pay our bills.
The exemption on what has been called shadow income — relief that can amount to tens or hundreds of thousands of dollars — originally was supposed to expire at the end of 2010. But with the housing market and economy in free fall in 2008, Congress extended the break until the end of the 2012 tax year.
The government monitor of the settlement reported last week that the banks had provided a total of about $10.6 billion in aid from March 1 through June 30. Nearly 140,000 homeowners received some type of relief under the settlement, averaging about $76,615 each.
A middle-class household would owe 25% taxes on that relief — about $19,000 for the average settlement relief so far. The tax would go up if the relief pushes the homeowner into a higher tax bracket or if the Bush tax cuts expire, as they are set to do at year's end.
(Los Angeles Times)
Obama Is Going To Pay For My Gas And Mortgage!!!