Posted on 08/30/2009 8:45:34 AM PDT by ProtectOurFreedom
...arlier this month the nonpartisan Congressional Budget Office delivered its latest revenue-raising options for Senate and House consideration as they write this fall's tax and budget legislation.
Tucked away in the report are several incendiary plans that could if adopted cost homeowners billions of dollars. Though not formal legislative proposals, the CBO's options represent a handy fiscal menu for legislators to pick and choose from to reduce the deficit now at unprecedented levels or to pay for new programs they might want to advance.
Tops on the CBO's hit list for housing: Slash deductions for homeowner mortgage interest from the present $1.1 million limit to $500,000, phased in with $100,000 annual reductions starting in 2013 and extending to 2019.
Under current law, taxpayers can write off mortgage interest on their principal home debt up to $1 million, and on home equity debt up to $100,000.
Under the CBO's option, that maximum mortgage debt amount would shrink yearly until it hit $500,000.
Over a 10-year period, this change alone would boost federal tax collections by an estimated $41 billion.
The CBO offered up a second option if Congress wants to raise a lot more money: Replace the current mortgage interest deduction with a flat 15 percent tax credit for everybody with mortgage amounts below the declining limits in the first option. Rather than taking write-offs that are tied to your personal income tax bracket, every homeowner would get a credit worth 15 percent of mortgage interest paid.
Who'd benefit? Primarily lower- and moderate-income taxpayers who don't itemize on their returns. Who'd pay more? People with big mortgages and higher-than-average incomes, who are far more likely to itemize under current rules.
(Excerpt) Read more at mercurynews.com ...
Tell me about Manhattan... What has happened?
It’s the safest urban area in the world.
What do you say to Regulator’s post #15?
My post wasn’t necessarily about the virtues of city living vs. suburban or rural living, only to state that many people live an urban lifestyle by choice because it is what they enjoy, and also to point out that renting does not make someone “broken” or otherwise easy to control or whatever it is that was being implied.
Many many homeowners are heavily indebted to banks. These days, many of those are indebted beyond what they could repay even if they sold their homes. How is that a more free, unencumbered, liberated way of living than renting?
I have the freedom to pick up and move whenever I choose; I have the financial flexibility to save my extra income in a variety of ways. Yes...I have given up some things: many people truly did become wealthy because of their home investments...but not most of the people my age, many of whom are currently struggling with sagging home prices. I obviously will not become wealthy renting an apartment, but it is a lifestyle that has some benefits which shouldn’t be ignored.
Re-pa-ra-ti-ons. In camoflage. If it helps some porr whites well that’s not what was intended but we gotta appear unbiased and keep people unawares to what we’re doing.
On the issue of student loans you will find me in 100% agreement. There is a reason that over the last 40 years medical costs and student tuition have increased at thrice inflation. It’s called third payer.
I was replying to #37.
This from a "libertarian"? Statist declarations from on high about what kind of home we should live in?
I'd say don't tax the income or the expense. Get rid of the IRS and get the government out of manipulative tax code schemes that create more problems and more government. A simple, flat consumption tax can fund what we need to.
The damned AMT was already taking a good portion of it. Now they want to kill off the rest.
The writer was probably educated by a union member.
Seems everyone including the so-called "Republicans" forgot the principle of no double taxation.
I liked living in a large city - but the more liberal ideas involved - the more horrors.
I just dont like the distortions created by the government...perhaps others dont mind (or dont see the whole picture).
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For people who can "see" - these are "consequences". For those who can't see down the road, they're "unintended consequences". For liberals they're "we feel we are helping students, so we are helping students and if you show us facts contrary to our "feelings" it means you hate students". Or some such irrational garbage...
As soon as most are renting - the gov will put the screws to renters.
Government should not be able to “incentivize” via tax breaks all aspects of our lives, let the free market work. Look what happened when Congress tried to make home ownership available to uncreditworthy people, we are paying for that now, WHY?
Good deal so you really don’t need the tax welfare check.
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