Dear John: The Republicans state that they do not want to increase tax rates on the rich because they do not want to tax job creators. I have an idea for a compromise.
Raise taxes on millionaires but exempt them from increased Subchapter S income, where the corporation employs at least X number of people.
This would encourage companies to increase hiring to that minimum amount as opposed to ObamaCare, which discourages new hires. The Republican argument against increasing taxes would disappear. Of course, real spending cuts would have to be part of the final agreement. What do you think? L.R.
Dear L.R. I asked David Sands, a CPA at the accounting firm Buchbinder Tunick & Co., who said, “Your suggestion has merit and is quite similar to the Jobs Tax Credit, which has taken many forms over the years.
“Perhaps an expanded credit for small-business owners could help. Taking it one step further, there are many incentives which can increase hiring, including expensing of fixed-asset purchases, research-and-development credits, etc.,” added Sands.
There you go! If they pass something like this, you can talk about your contribution to the issue at Christmas parties.
Dear John: I am a 71-year-old retiree. I have a $378,000 mortgage at a 7 percent fixed interest rate for 30 years. I never missed a payment, but today’s rates are about half that.
I also have a $300,000 lien on my home from a bad investment.
I am living off my 401(k) retirement plan and a pension, which is enough to pay off my mortgage but not the lien.
The bank refuses to refinance my mortgage at today’s rate because of the lien and drop in my credit score.
Here’s my question: Is there any way I can get the bank to lower my rate (maybe by suing them) so I can pay my mortgage and pay off the lien with the savings from a lower interest rate?
I spoke to all the lien holders and they are willing to take less than the original amounts of the loans.
It would be a win-win for all. Tony in NJ
Dear Tony in NJ: I guess you could sue. But every bank, of course, has a funhouse full of lawyers with nothing to do. You would have to pay an attorney, and you already have money problems.
I called the mortgage company — Citibank Mortgage — and they are looking into the matter.
The big issue will be whether the bank still holds your mortgage or whether it has been bundled into a security and sold to investors.
If the bank still has it, you’ll have a better chance getting the terms changed. Maybe they can do something if the mortgage was sold.
You have given Citibank permission to discuss this matter with me, so I will monitor it — especially if you remind me sometime in the near future.
I hope this works out.
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