Posted on 07/28/2011 1:12:56 PM PDT by illiac
WASHINGTON (Reuters) - Lawmakers are eyeing a popular tax deduction for mortgage interest as they look for ways to fill record budget deficits, although any changes are likely to await a broad reworking of the tax code.
Two forces are conspiring in a way that could put the long-cherished deduction on the chopping block: a need to raise more revenues and a feeling among policymakers that government incentives for housing have been too generous.
"It's a confluence of several factors. First, it's such a large tax break," said Donald Marron, director of the Urban-Brookings Tax Policy Center. "And the tax treatment of housing is much more favorable than we provide for most other investments people undertake."
(Excerpt) Read more at finance.yahoo.com ...
Hello town homes and apartments.
The unemployment rate AND the deficit too.
A revolt of unimaginable proportions will result.
If they eliminate the mortgage interest deduction the value of single family homes will drop like a rock and you'll be able to buy two of them.
....but, but the middle class was not going to be taxed.....I guess they’ll only take this away from those nasty millionaires.
Cut entire agencies and then cut those agencies remaining to the bone before you touch one blessed thing that impacts taxpayers and property owners, you blithering idiots.
Amen to that. I was thinking that Congress wouldn't be THAT stupid, but, the way it's going one has to wonder.
I’m speechless. It is painfully clear that Washington only represents the welfare cheats, unions, perverts, druggies, drunks, illegal aliens, women who abort their babies, children who euthanize their parents, unemployed who refuse to work, Muslims, UN, and other freeloaders. If you play by the rules, work hard, and pay your bills and taxes, you are only considered a cash cow to be milked until dry by the “so-called” representatives in Washington. I’m fed up with it.
I’ve been calling Representatives and Senators all week trying to let them know that I’m tired of their inability to do their jobs. How many CEOs have been raked over the coals and sent to jail for less???? They don’t care about what I think. They’re only worried about being lied about in the press. GROW UP!!!!
Term limits would be much more effective and popular.
The error in the report is that they are citing a Communist/Marxist and he equates HOUSING with INVESTMENT.
We've always suspected the Commies would be happy to leave people sleeping under bridges and in culverts if it would help them ban private property entirely.
This guy at Urban-Brookings kind of gives away the show.
Outside of those pols representing commie infested areas like south-central L.A., Detroit etc., any politician stupid enough to vote for this will be terminated (politically, that is).
The question is: How many homeowners will lose their homes if this is done?
Tax on interest earned I can sort of wrap my mind around.
Tax on interest PAID I can’t.
Since you are paying the interest with after tax money, you are essentially being taxed on the interest you paid, meanwhile the bank is being taxed on interest collected. This seems like a double tax on the same money to me.
Am I missing something or not understanding the mortgage interest tax exemption?
In 1992, I bought a home that I could afford. Because I kept it reasonable, I never paid enough interest to be able to take the deduction.
“I’m glad I own my single family home because the way things are being pushed, single family homes are soon to be unaffordable for anyone to buy.”
Huh? Our friends in government are currently doing everything they can to prop prices up, on the old New Deal theory that higher prices equal better economy. The market wants prices to go down. Needs them to go down. If government got out of the way, they would go down.
I can’t see how they could make it apply to existing mortgages which were contracted with the mortgage interest deduction factored into the decision.
It would most likely apply to new mortgages ... but you never know with this administration and bunch in Congress.
never mind tax revenues for towns that base their real estate/property/school taxes on the value of the house...
If they can do it to the seniors and to the federal retirees, they can do it to any other benefit or deduction.
“This seems like a double tax on the same money to me.
Am I missing something”
If there is a double tax, what’s the confusion? Since when can’t the government tax the same money twice? Works for the Death Tax.
We have to stop thinking there are rules to this game. There’s no fairness, no trust funds, no linkage, no double jeopardy, no naturally non-taxable activities. All there is is what they can get away with.
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