It really sucks to live om a communist nation.
That is not $1.1 million of interest, but interest on a $1.1 million loan or loans. Not well worded.
This is great! Do it! All those stupid Democrat lemmings who voted for the communists thinking that taxes would go up on “the rich”. Ha!
Wait until Mr. and Mrs. John Q. Public file and find that their $1500 refund turns into a $200 payment! I won’t like paying, but it will be worth it to hear the morons scream and cry.
Meanwhile, Obama’s peeps will get “their share” of John Q. Public’s money.
The best way to get people’s attention is take their money. And Democrats in charge assure that will happen. I just hope we survive it.
Great, just great ... so those of us who chose to buy a home are not only penalized by declining home sales, plummetting property values, now they want to take the only deduction I have left.
The wealthy folks will buy their primary homes in South America and live there year around... this proposal is an epic fail in the making because the US government cannot tax foreign homes (until they are sold of course)...
Is more better if everyone rent from state.
Stop being so greedy and working so hard to produce and buy all you can afford... a cheaper house.
It's whats best for Amerika.
Thank you government for thinking for us who can't think for ourselves.
That's why YOU are in charge. /s
This is to be expected. A socialist government requires fresh blood, and more and more of it as time goes on. The is one more device for taking money from one group of citizens (the successful and prudent) and giving it to constituents who form the core support for the ruling elite.
Will make the health care townhalls look civilized. Will also drive home prices down by another 20%.
For all you young folks out there who think this is a "privilege" granted by a magnanimous Congress, it's not. All interest paid used to be deductible, including consumer credit - until a "Republican" named Bob Dole canned that deduction in 1986 (they called him "Reagan's Tax Collector" for that one).
The reason is simple. Interest income is taxed. It's double taxation to tax both the interest payer and payee.
Funny that this used to be a well known principle. Guess the government schools don't talk about that anymore.
It most certainly would increase the number of foreclosures, create an urban proletariat wandering the streets, and bring some serious civil strive to this country that would probably result in the deaths of the mebers of Congress who proposed this idea.
The maxim is you can't get blood out of a turnip.
This deduction should never have been allowed in the first place since all it did was serve to create artificial demand and inflation in housing. However, once you implement it you cannot take it away without destroying people’s asset values even further/
That proposal should really help home sales.
Every time the government messes with real estate taxes we have a decline in values.
Yes! Do it. Preferably before 2012.
Headline: Proposals could cut mortgage deductions
Story: “Though not formal legislative proposals”
This isn’t a proposal. It is just the CBO doing its job of running the numbers on a whole bunch of options.
It isn’t, and shouldn’t be, the CBO’s job to decide which options should be considered.
Really bad headline.
I am in philosophically in favor of getting rid of the home mortgage deduction because it is yet another way the government distorts markets. But to do it now will not be helpful, and will cost everyone money. It will drive down the resale value of houses at a time when they haven’t even stabilized yet. Not only will this hurt the homeowner, this will hurt the various governments even more than any income gained, because property taxes will come down, and the value of the mortgages and houses held by Freddie and Fannie will also go down in value considerably.
Inflate all the housing values by loaning to people you know cannot pay but who nonetheless create a sense that demand is far outstripping supply and will well into the future.
Raise homeowners property taxes based on the inflated home values and never turn down a new loan to an unqualified "buyer" at the inflated price to justify the property values.
Promise your Libprogocrat base you won't increase taxes on average people, only on millionaires. Then, appraise their 250k homes as being worth a cool million in the eyes of Dodd and Fwank, so now the dolts who voted them in are rich!
Dang, an old 900 sq ft walk-up in da hood is worth a million bucks and the Great Society has finally arrived. Everyone a millionaire, everyone taxed like one.
Regards
It is already happening.
If you are upper income, and have no deductions because your children are grown, out of the house, etc.- you reach a point where you cannot take a mortgage deduction.
It is called a “phase out” of itemized deductions.
I spent the last 10 years paying off my mortgage as a result.
