How will the just announced White House $3.8 trillion budget for fiscal 2011 impact the luxury real estate market?  In it is a proposal to raise capital gains taxes back to 20%. (The Bush tax cuts had reduced this to the current 15%.) …..Better get those capital gains posted in 2010! The top tax bracket would rise to 39.6 percent next year, up from 35 percent now. Mr. Obama proposed limiting the value of benefits, which include deductions for mortgage interest and some charitable deductions, to 28% of the deduction. The solution for the wealthy? EARN LOTS MORE! If the GDP is forecast to grow by about 4% a year, the growth may offset the additional taxes. Wishful thinking? Surely doing anything to dampen the real estate market now is not the smartest timing? Then again, it could fuel tremendous activity in 2010…

3 thoughts on “WHITE HOUSE 2011 BUDGET: NOW WHAT?”

  1. That’s a lot of tax dollars recycled in the government hands. Hopefully Obama can achieve a real recovery which will bring us back to positive cash flow instead of the inherited deficit from the Bush Era!

  2. Does anyone here deny that the president was elected to step into a burning building? Now that he is in there, you want him to use a garden hose or even a bucket to put it out. If you all know so much, what exactly would you have him do that’s in keeping with the agenda of the constituency which elected him into office? Did you forget that the Democrats won and do you know that means that they get to set the agenda? Or are you saying, yeah they won, but we still want to say what goes, if that ain’t arrogance, I don’t know what is. Here’s some interesting info, on balance, since 1980, the Republicans have had more control over government than democrats. That being the case, why don’t we have a smaller government that is more fiscally responsible?

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