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That is because the plan assumes a “considerable amount of deductions” in its tax estimates for the typical higher-income taxpayer, according to Jeffrey D. Gramlich, a professor of accounting at the University of Southern Maine, who prepared his own tax calculator to compare the candidates’ plans. (His Web site is electiontaxes.com.) Renters would have fewer deductions, he said.
The average monthly rent for a lease signed in September on a two-bedroom apartment in Manhattan was $3,630, according to a market report from Citi Habitats.
http://www.nytimes.com/2008/10/26/realestate/26deal2.html?ref=realestate
You don't have a tax write off, but you don't have to pay property taxes either, usually about a wash.
But the Obama-Biden tax calculator on his Web site, barackobama.com, shows that a family earning only $200,000, but without a mortgage, will get no tax cut under his plan, while a family with a $400,000 mortgage will get significant savings.
I guess he wants to encourage people to buy homes .... they cant afford!
Renters pay property taxes. It's factored into your rent.
...and everbody is buying a home - some for themselves, some for their landlord.
Some people aren't buying a home, they may own it outright.
... Maybe it's time that we renters for a union and go on stike...
Dont vote for Obama if you dont like his new tax proposal.
Well, for what I pay for rent, I'm not paying a dime of property tax and only about 2/3rds of what it would cost me in mortgage payments. So no, many renters do not pay property tax.
>You don't have a tax write off, but you don't have to pay property taxes either, usually about a wash.<
Wow. Some things said. So wrong the mind boggles.
First of all, the "tax cut" assumes neither partner makes more than the social security cap. Under Obama's plan those making more than that (currently $102,000 I think) and their employers will pay 7.6% each in social security taxes that they didn't before.
That's fine if that's what he wants his plan to be and I personally don't have a huge problem with that even though that would mean about $1,300 out of my pocket just before the end of the year. I do have a problem with the "tax cuts for those making under $250,
since (interestinly enough) the Obama calculator states that I'll save about $1,300 in income taxes. Yay! I get an income tax cut but pay it in a different way.
Regarding property taxes...I grew up in New Hampshire, where there are no sales or income taxes so the state is very dependent on property taxes. Perodically, the issue of "fairness" comes up because renters don't pay propery taxes, etc. I'm not a real estate expert, but I'm pretty sure renters live in buildings that are taxed. Now, if the owner wants to eat the cost of the taxes and not pass it on in the form of monthly rent, that's great but I think most owners do pass that cost along to their renters in one way or another.
I am not seeing anything in either vote to get that excited about as fax as taxes go. The only thing I am seeing is who would be able to step up and run the US with out wavering in their stance overall.
My understanding of Obama's mortgage interest deduction is it is only for those who do not itemize which are very few people with a sizeable mortgage I would imagine.
I am still in shock about the stated rent for Manhattan! I don't know how people do it, or will be able to continue to do it.
I do agree that most of the taxes on rentals are already figured in and I am not sure of a fair way to give a deduction to renters for that. It would be interesting to see if anyone can come up with a workable idea! Usually the posts here are pretty imaginitive!
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The Invisible Renter
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The Invisible Renter
WHILE the presidential candidates are competing with each other over plans to bail out home mortgages across the country, pity the suffering renters of New York who are left out in the cold. The voluminous tax-cutting plans by Senators Barack Obama and John McCain do not address the fundamental disparity in the tax codes that allows homeowners huge deductions on mortgages but does not provide a similar benefit to renters, who make up around two-thirds of the city’s households.
Senator Obama, for example, has promised to cut taxes on American families earning less than $250,000 a year. But the Obama-Biden tax calculator on his Web site, barackobama.com, shows that a family earning only $200,000, but without a mortgage, will get no tax cut under his plan, while a family with a $400,000 mortgage will get significant savings.
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