Hello town homes and apartments.
The unemployment rate AND the deficit too.
A revolt of unimaginable proportions will result.
....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.
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.
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).
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?
Moron politicians need to remember doing away with tax shelters that supported investment in commercial real estate as part of the Tax Reform Act of 1986. The value of commercial real estate dropped precipitously overnight, the leveraged structures immediately ceased to cash flow, and banks took huge losses, almost 100% as a result of the tax law change.
When banks started failing because of the change, politicians blamed poor banking practices. But the commercial real estate losses, and commercial real estate loan losses, were almost entirely instigated by the change in tax law.
Fast forward to now, when both commercial and consumer real estate values are in the tank and banks are failing right and left. While the tax shelters needed the tax deduction to make the leverage transaction work, there will certainly be very significant decreases in single-family home values as a result. That will aggravate an already weak housing market and weakness in the banking sector, which has been just about beaten to death over the last four years by the economy, real estate values, unemployment and a ridiculous proliferation of onerous regulation.
In truth, I am not so much opposed to the idea, but even in good economic times, this needs to be phased in over several years. But the worst thing is, it would be very hard to pick a worse time to do this. In the current environment, this borders on INSANE, but given the timing, it is likely motivated by malicious intent.
So...
Renters will have higher rents as landlords will pass along their higher costs.
Housing prices will sink even more as people use the mortgage deduction to recapture some of their interest payments throughout the year. If you pay $100 in interest and get 33% back, it’s a reason to buy and stay.
The basis for a lot of Government spending for schools, cops, etc. is property taxes and assessments. These will also increase as more people will fight to have their homes re-assessed due to this government intervention.
The Marxists want 100% of all private property, all money, all goods, all services, all land and every aspect of your life, including your doctor, teacher, job, internet access or travel to be eminating from government.
It’s sick.
the millionaires and billionaires will really feel this one...of course no one who makes under $250K will pay a single penny of more tax, obama said so
sarc
schweet! there goes my only write-off
thank goodness... now i’m at a flat tax of 50%.
just awesome
/sarc
up next, 401ks ... and then the confiscation starts
A few thoughts:
a) While I am homeowner who gets a significant tax benefit from it, I am not philosophically opposed to eliminating this deduction. I don’t see any particular reason why home mortgage interest should be deductable. However, if the HMI deduction is ever eliminated it should be offset by equal tax cuts.
b) That said, eliminating it now would be INSANE. The average homeowner currently taking the deduction would pay about $3,000 a year more in taxes. This would force many more into foreclosure. Also, those who bought their homes during the bubble would be some of the hardest hit, as the bulk of monthly payments on newer mortgages is interest as opposed to principal. It would also strongly affect recent buyers, who bought after the bubble.
c) Not only would foreclosures skyrocket, home prices would plummet, putting more and more homeowners underwater on the mortgages. If the average homebuyer needed to pay an extra $250 a month in taxes, it would shave nearly $45,000 off the purchase price that would fit their budget.
Points b and c could create a perfect storm that could cause the bottom to fall out of already depressed housing prices.
We need MASSIVE spending cuts, not tax increases.
Fortunately, I highly doubt this can pass as it would be political suicide for most of congress and the president.