The net result is to pump up the price of houses.
how about reducing spending?
I know its a radical thought
The mortgage interest rates in the USA should be RAISED. There is no incentive to deposit money into a savings account or a CD. Funds would flow into banks like a busted dike if banks earned more on mortgages and could pay a decent return on savings.
Now, as long as the central socialist government’s income tax is such an outrage all deductions have to remain until the unwieldly mess of tax law is overhauled!
Might as well eliminate the Standard Deduction too.
Mortgage interest paid to the note holder is income. It is taxed. It is not as if that money goes untaxed.
I don’t think the mortgagor should also pay income tax on the transaction.
This would result in me having $5,000 LESS to spend on products and services that REALLY impact the economy.
The Feds would only use this $5,000 to by more votes.
If you believe this money would be used to either reduce the deficit or produce something useful, you are just another useful idiot, with no concept of this adminstration’s behavior to date.
Install a flat tax of around 3% across the board, everyone pays 3% on every dollar, no deductions, period.
Adjust the size of government to to fit the revenue.
The effect it would have on homeowners would be the same as a massive tax increase.
Without COMPREHENSIVE tax reform, this is an idiotic idea.
Replace the income tax with a flat tax EVERYONE pays amounting to 8 percent of all income, no matter where it comes from, and you have a deal.
No more free riders. Everyone needs to have a stake in tax policy. With over 50 percent not paying taxes (you need to crank in the illegals), there’s no incentive to oppose tax increases on the producers.
Mortgage Interest Deduction for homeowners puts them at more equal footing of landlords who get a similar deduction as a business expense.
Ending it would only cause more home foreclosures.
Before subtractions my total deductions were 19k including mortgage interest. After subtractions this went down by 11k. The author is lying, obscuring the truth or hiding something.
Set your sites higher.
Eliminate the Income Tax.
Tell ya what.
Eliminate property taxes so that we can truly own our homes and land, instead of paying rent on them to the government, and we’ll talk about getting rid of the mortgage deduction.
Until think go ‘way.
Eliminating the mortgage deduction will absolutely crush the remaining breath out of US real estate. There are a huge amount of people that are paying their mortgages now, are not upside down but do not have enough equity to refinance at market levels today, would simply walk away from their home if they lose the tax deduction. I know I would.
The answer is to do away with the income tax all together. It’s not the Govt’s business how much I make, what I pay for mortgage interest, how many kids I have, what I give to charity, if I am married etc, etc, etc...
The income tax has always been a scheme for Politicians to get into your personal business and then try and control your choices.
No reason to get a federal subsidy for living in a high tax blue state/city.
This would also put more pressure on the high tax governments.
This article does not seem that well thought out.
If you think what we are experiencing is a real estate collapse just wait and see what happens if interest deductiblity is removed.
Eliminate the unconstitutional departments of Education, Homeland inSecurity, energy, labor, health and human services, communist arts and propaganda, ATF, HUD, etc. and then we will talk about screwing the middle class out of their only tax deduction.
Income tax rates are already set to explode next year, as well as taxes on capital gains and dividends. My family's taxes are due to go up by over $4,000, and no, Congress will not do a damned thing about it. Eliminating mortgage deductibility would cost us another $1,500+. At that point, I'll consider another country with lower tax rates, of which there will soon be many.
Eliminating the mortgage deduction would drive home prices further down, increase forclusures, and make more people abandon their homes through short sales or “walking away”. Here in the Sacramento area there ae whole zip codes with more the 70% of homeowners underwater. They stay despite owing up to twice what their homes are worth because they can afford it, and they like living there. Take awy the deduction a lot of tem will either choose to leave, or won’t be able to afford the payments anymore and just stop paying at all until they are forclosed.
Oh yeah, just what the crippled housing market needs now. The final nail in the coffin. Oh, yes, this is just great advice. And I guess you go around making loud noises behind heart attack victims and kicking the canes away from cripples.
Nice. Brilliant.
Don’t get me wrong, I don’t think there should ever have been a mortgage tax deduction. You want a house, get it. Don’t expect me to subsidize your purchase.
Of course, I probably would not have bought a house 3 years ago if there was not a mortgage tax deduction, because I just felt renting was a more cost effective option without the deduction. The deduction made a difference in my decision, so if you end it now, you better grandfather me in or be prepared to take incoming hot lead from a furious homeowner who was duped. You can’t change the rules in midstream.
Yes, I am all for ending the mortgage tax deduction, but it would be economic suicide to do so in an economic depression that is housing based, with the housing market still a mess amid 4% mortgage interest rates.
AFTER the US economy recovers and AFTER home sales and prices rebound, then feel free to eliminate the mortgage deduction for NEW BUYERS.
The fact is, you are dreaming if you think the home mortgage deduction would ever disappear. The housing industry lobby will never allow this. Never. You are dreaming.