Most taxpayers do not earn enough, therefore do not spend enough, to make itemizing deductions advantageous. It is always more beneficial for me to take the standard deduction, even after accounting for my mortgage, state taxes, medical and dental-with a 7.5% AGI exclusion is a hurdle anyway-not to mention charitable donations (I give what I can, but it doesn't compare with what upper-income individuals can give, while legally tax-sheltering their investments from probate).
If not for the standard deduction I would venture to guess that 90% of the population would be sharing much less than the $700 billion you stated.
Kelly Archerof UT10:56AM February 05, 2013
Medical expenses are subject to 7.5% of AGI so in most taxpayers are not fully deductible.
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Kelly Archer of UT 10:56AM February 05, 2013
JRB of CA 2:20PM March 30, 2012