IS THE MORTGAGE DEDUCTION GOOD FOR AMERICA?

[BobL]

“Much like the SALT deductions, the biggest beneficiaries of the MID are people living in Blue states. That appeared to be reason enough for folks on this forum to support repeal of the SALT deduction. Seems like a similar thinking should be applied for MID.”

I agree, it’s time we FIGHT BACK. If the people who walk around with their noses in the stratosphere want to protect their cherished SALT and Mortgage deduction, the least they can do is stop treating Trump and us like shit.

Since I don’t see that happening, I certainly don’t mind killing off the Mortgage deduction, or at least capping it, so the blue staters can feel some PAIN for their attitude towards us Deplorables.

I realize that will catch some good conservatives in those states, I feel bad for that, but that’s life. Right now, we need to worry more about the 95% of Trump supporters who are, right now, being forced to subsidize the lifestyles of people who literally HATE THEIR GUTS.

[Maryland Man]

I do understand bank rates. I also understand if there is lower demand for mortgages, rates will be more competitive. There are plenty of sources for mortgages out there.
Never made the statement the government has any right ‘my money’. What I am saying is the government is using the tax code as social policy which is dependent on ones views. Taking out the SALT deduction means that people in low tax states are not longer subsidizing those in high tax states.
There should be no deductions - flat tax - period - one rate for all, no standard deduction, no child exemption. Use the tax code to fund a limited government, not pick winners and losers.

[kearnyirish2]

I own my home (or part of it; the bank owns the rest), and while I understand the deduction is to encourage home ownership, it is very clear that “globalization” has made buying a home one of the worst mistakes an American can make nowadays. Never mind assuming your job will be around for 30 years to pay the mortgage; nowadays whole regions die off - and those homeowners are stuck.

Here in the NYC metro area, the same government that bemoans the flight of American taxpayers is quite happy to import foreigners to take their jobs; now whole developments are filling with Asians as the Americans lose their homes to foreclosure.

[KC_for_Freedom]

You are very right to understand the housing market. They say you need to stay in a home for at least 7 years to come out ahead on the deal over rentals but there are those intangibles: like the landlord can kick you out at will, and in your own home you can knock out a wall if it makes sense to do so.

I have had it both ways. IN CA my house always made money for me. But I purchased once in Austin TX and lost nearly everything in a down turn where I also lost my job.

All in all I prefer to believe in home ownership, because like I said the homes are taken better care of and the community is on the whole more friendly. (At least I think so) But I think I agree that the government should get out of the business of encouraging people to buy with cheap loan money. I also think they should leave this business with a gradual reduction in the benefit so as to harm the least number of people.

The international aspects are another pickle. Here in CA whole neighborhoods are being bought up by Asians paying full price in cash, This puts the market out of reach of all but the wealthiest of the locals. However, I believe in free markets and these things have a way of leveling out after a while.

There was a period where the Japanese were buying everything they could get in the way of American property but then we had a market crash and they lost much of their wealth in one down turn. The moral is to know your market and understand what is likely to happen to it. In the case where everyone is losing to foreclosure, the renter may come in and buy. This is what I saw in Austin. Only I was in foreclosure and had to move back to CA.

[kearnyirish2]

I only bought because we were starting a family; otherwise I would have kept the freedom & mobility offered by renting.

I agree ownership stabilizes an area, but that stability in housing can only exist with stability in jobs - and that disappeared years ago in many places.

It disgusts me that northeastern governors are openly griping about how this tax reform hinders their ability to screw us on the highest property taxes in the country; they aren’t even hiding their contempt for us anymore.