New tax law

Most mortgage lenders have income ratios to determine how much debt a person can incur. Basically they want the mortgage payment not to exceed 30% of gross income. A $350,000 30 year loan has a monthly payment of $1,650. To qualify the gross income must be at least $66,000. The interest on this loan would be $19,000 and if the taxes were $4,000 the total would be $23,000 which is less than the $24,000 standard deduction in the Trump plan so this person would not itemize and thus not deduct taxes or interest. The new plan proposal states that a person can deduct mortgage interest up to a $500,000 mortgage and the can deduct real estate taxes up to $10,000. This sounds like upper income people who will lose deductions not middle income people. I don’t know any working people who have mortgages over $500,000 or pay more than $10,000 in property tax. The argument that this is a tax break for the rich doesn’t hold water so those opposed have now changed the argument to it is tax break for corporations which it is. Under the Trump plan a family of four with an income of $66,000 will pay $1,800 in federal income tax. Under current law this family would pay $2,700. This savings is because the child tax credit was increased from $1,000 to $1,600. As far as the superrich they don’t normally pay income tax but they pay capital gain tax. This is a big savings since the top rate on income tax is 39.6% and on capital gains it is 20%. In addition state income taxes are higher than state capital gains taxes which usually run about 3%.