Letters: Newsday's tax plan needs tweaking

Conspicuous by its absence from "Balancing Act: Scrap The Tax Breaks" [Editorial, Nov. 17] was any reference to the words "credit" or "tax credit." The number of individuals and businesses that claim tax credits every year is in the tens of millions. These credits, amounting to billions of dollars each year, fall into the same category as the deductions and exclusions mentioned in your editorial.

Worse, every time a new credit is adopted by Congress and the president, they fail to give the Internal Revenue Service the resources to effectively track who is entitled to the credit. The net result is always the same: Many who are not entitled to the credit claim it and get it, while some who are ignorant of the law fail to claim the credit and don't get it.

George Deller, Old Bethpage

Editor's note: The writer is retired from the IRS.
 

I find it deeply troubling that Newsday, which serves Long Islanders, would show such interest in eliminating the deduction for home-mortgage interest. This would be a great disservice to your readers, most of whom are homeowners.

The editorial did raise a salient point in stating that the deduction limit applies to both primary residences and vacation homes. This is absurd.

While the government may legitimately encourage home ownership, it should be under no obligation to subsidize the ownership of vacation homes. Excluding mortgage interest on vacation homes would raise minimal revenue, but it would certainly increase fairness.

Joseph Squerciati, Hicksville
 

Removing the mortgage-interest deduction is not a solution toward fairness. Are houses across the country the same in price?

On Long Island, and in similar areas, prices are higher and thus debt is higher. Under your solution, either the smart people would leave Long Island or demand higher wages to afford their houses. Since I don't see higher wages on the way, that would leave only one option.

Why don't you advocate doing away with charitable contributions? I'm sure the charitable institutions would understand the drop in revenue!

Provisions in the tax code were put there to promote equity and business investments. It is when individuals choose to abuse those provisions that inequities result. Honest taxpaying citizens should be calling our representatives and showing support for more funding to the IRS. Right now, its budget is being cut. Cutting this budget will result in fewer tax dollars for the treasury.

Richard M. Schwarz, Wantagh