Stubs for Basic Income
From The Shelf Project
- Repeal the deduction for interest paid on home equity loans.
* Repeal the deduction for interest paid on vacation home loans.
* Repeal Section 461(g)(2) or further limit the current deduction for "points" on home mortgages.
- Amend Section 163(d) to disallow deduction of investment interest to the extent of Section 103 tax-exempt income (beyond those cases traced by Section 265).
* Repeal the interest deduction for all loans secured by a life insurance policy or a deferred anuity (to the extent of cash surrender value).
* Amend Section 280A to apply the formula of Section 280A(e)(1) to interest and taxes.
* Use the 120% AFR for purposes of Sections 483, 1274 and 7872.
* Repeal Section 1274A and Section 483(e), which cap otherwise applicable interest rates.
* Amend Section 453A to impose an interest charge on debt obligations exceeding a lower threshhold, perhaps $1 million or even less.
* Repeal the installment method for accrual method taxpayers.
- Narrow the like kind standard for real property under section 1031 by employing a categorization approach modeled on the depreciation categories for real property.
- Alternately, declare that all real property is not of like kind to all other real property under section 1031.
- Treat tips as self-employment income, rather than income from an employer. While this would somewhat reduce revenue collection, it would greatly reduce compliance burdens for businesses in a poor capacity to enforce compliance by withholding and paying an employer share of FICA, and this, in turn, would probably redirect enforcement resources to more appropriate targets than the small businesses usually involved. This could be accompanied by a requirement that employers flag the W-2s of all tipped employees.
