Obama's Deficit commission may target mortgage deductions (caps on tax breaks for mortgage interest)

Hotair ^ | 06/09/2010 | Ed Morrisey

[Alberta's Child]

Exactly. Great point.

[Oceander]

Could you show me a bank that pays taxes, I have never seen one.

By that, do you mean a bank that writes a check to Uncle Sugar, or a bank that bears the economic burden of the costs of a particular tax?

[Alberta's Child]

Understood. I knew they were deductible at some point in the past, but I wasn't sure when. I was barely a taxpayer in 1986, and even at that I was in high school so I didn't have a need to itemize any deductions.

Thanks for the information!

[Alberta's Child]

See Post #3. This thing actually was proposed during the Bush administration -- though it was done by a commission and not by the president himself.

[PigRigger]

Wouldn't surprise me a bit...just another stupid move by this incompetent administration...

For prosperity to take root they need to fertilize environment to support small business and investment....but these dumb-a$$e$ can only think about increasing fed revenues through taxes regardless of the impact on economic growth potential...

Are not ready for prime-time President is way out of his league in almost everything that needs addressing....as stated before the election....we are living through Jimmy Carter II....but this time he is on steroids...

May God be with us....

[E. Pluribus Unum]

Sorry, just another tax break that should be dropped! I really should say another Government subsidy...

I would agree with you, except for the fact that it amounts to bait-and-switch for people who already have mortgages.

The tax break is one of the things they used to get people to take out mortgages they couldn't afford. The entire housing industry of the past 20 years was predicated upon cheap money loaned to anybody, courtesy of Washington.

Grandfather it out, but don't take it away from people who entered the contract with the tax break factored into their payment equations.

[SeekAndFind]

This thing actually was proposed during the Bush administration -- though it was done by a commission and not by the president himself.

Here's the question --- WAS IT GIVEN SERIOUS CONSIDERATION ?

Of what use are these commissions when their proposals are simply shelved ?

On second thought, let me answer that --- it would be political suicide to even act on this proposal at a time when the housing boom was on its way.

[Alberta's Child]

According to the next sentence in the article . . .

But the commission’s plan stalled in Congress, partly because of popular support for the mortgage deduction.

[SeekAndFind]

Yep, as I said, it would have been political suicide to do away with it.

Sometimes what’s necessary isn’t necessarilly popular.

[Alberta's Child]

Sometimes what’s necessary isn’t necessarilly popular.

Right. Of course, that's exactly how democratic governments end up on the brink of insolvency. See California, Greece, New York, the United States of America, etc. as prime examples of this.

[Goreknowshowtocheat]

I agree. Making this once free country communist is not really popular, but lets give it a try.

[org.whodat]

One is the cost of doing business, the other never happens.

[reed13]

I’ve had an ongoing arguement with our eng. mgr about paying off your mortgage. He’s convinced that the tax break and ability to push off full payment to increase available cash for nice to haves outweighs paying it off.

I on the other hand managed to pay off our house last xmas as a present to the wife. I had an inkling that they would be messing with deductions on top of the rates. Plus it made more sense to me to save the thousands in interest paying early gave us.

Now we’re socking it away into savings/investment. I’m eyeing purchase of a farm or undeveloped land on a cash basis as a bolt hole. My wife is more comfortable knowing we’re free and clear - and frankly so am I given who knows what will happen with the way the economy is so screwed up.

[Oceander]

One is the cost of doing business, the other never happens.

More or less. I was just checking, because way too many people get confused and think that the guy who writes the check to Uncle Sugar is the same person who eats the economic cost of writing that check.

[BobL]

Yea - it’s been a tough call for me. I paid off my first house in 4 years (cheap house, high interest rate). I’m on my third house now (expensive house low interest rate) - and I only pay the monthly (and hoard a bunch of cash).

Since I expect the dollar to crash, I’ve been buying EVERYTHING that I can think of that is non-perishable (including new cars, and soon, spare water heaters). I figure everything will at least double in price, and then there will be a push for price controls - and with that shortages,

Or we could end up with much higher taxes, including a VAT, which we’re being set up for. When that hits, I suspect that we’ll also have to pay sales tax for out of state purchases, giving me an effective rate of 30% - so same conclusion - BUY NOW. Things are a bargain, even if people cannot (or are too young to) remember prices from 30 or 40 years ago. In many cases prices were higher then than they are now...even ignoring inflation.

It’ll get bad.

[sarasmom]

Get over yourself.
You post like an ignorant liberal troll.

I suggest you re-read this thread.

People who “rent” pay property taxes.
All landlords base the rental fee on PITI,(Principle, Interest, Tax, Insurance) and a decent profit.

Perhaps you work so many long hours because you do not understand basic economic fundamentals.

If you think you actually “own” your private property, try ignoring your local and state property tax bills for a few years.

In the interim, just go merrily right along feeling superior to all us dumb people who are not as smart as you are!
What was the color of the Koolaid you drank?

[Goreknowshowtocheat]

Wouldn’t you rather be free? Guess not.