. Why do most people not qualify for medical deductions? Most people do not qualify for medical deduction because the 10 percent threshold is too high. Low income individuals would qualify but because most likely they receive government help, they cannot deduct those benefits. Similarly, Seniors which are a large part of the American population receive Medicare. So, they cannot double dip in tax benefits. For the middle class who has higher income and may be insured, it is hard to pass the 10 percent threshold . In conclusion most people do not qualify; the medical deduction is for people that are really sick and their sickness consume more that 10 percent of their adjusted gross income. Why is home ownership usually the “trigger” to itemizing …show more content…
These two expenses are usually higher than the standard deduction. Therefore, an a homeowner would benefit the most by itemizing his real estate expenses. A recent purchased $550,000 house in Anaheim has a monthly mortgage payment of at least 2000 dollars. The first year about 90 percent of the mortgage would be interest (20,000x12x.90) 21600, and property taxes of $1900 dollars. So, an individual would deduct $ 23,500 dollars in itemized deductions which better that deducting 6200 single standard deduction or 12,400 married filing jointly standard deduction. Should we get rid of all deductions and have a flat tax? This is a political question. There are not right or wrong answers. But, these are my two cents. I think the analogy would be getting rid of the Federal Reserve (U.S. Central Bank) . The Federal Reserve regulates the economy. And the current tax system is an extension to public policies created by the Federal Reserve. E.g. The Economic Recovery Payment in 2009 and 2010 which consisted of a tax credit of 250 dollars to stimulate the economy. In those year businesses were allowed to deduct expenditures in full. This was also to stimulate the economy. A flat tax would not have help to stimulate the