Posted on 08/20/2010 1:49:57 PM PDT by Libloather
Get Rid of Tax Breaks for Homeowners? No Way!
By Gerri Willis
Published August 18, 2010 | FOXBusiness
The administration's housing summit Tuesday looked at much more than just what to do with the floundering Fannie Mae and Freddie Mac.
What they discussed could impact every aspect of a homeowner's life - from down-payment requirements to the all-important mortgage tax deductions.
In fact - some experts now are saying deductions should be a thing of the past
According to the USA Today, the government spent about $80 billion last year to back up the mortgage interest deductions.
But one housing specialist says it wasn't worth the money because the tax break only goes to the wealthy: the same old argument about taxes.
But the wealthy have more expensive homes, and ... oh yea... pay more in taxes.
But here's the thing... nearly 67% of Americans own homes. That's a lot of people- and not just those making more than the made-up threshold of $250,000 a year.
The national taxpayers union tells us nearly 39 million people claimed the mortgage deduction.
For those in the $100-200,000 income range, the average mortgage interest deduction claimed was almost $14,000; meaning the value of the write-off would be $3,500!
For those making $75-100,000, the deduction was around $11,000; resulting in savings of more than $2,800.
And those in the $50-75,000 bracket, the average deduction was $10,000 with a savings of $2,500.
That's a lot of money - especially for families at those incomes.
(Excerpt) Read more at foxbusiness.com ...
This maybe one more step toward a flat tax - no?
Uh, either interest should be tax deductible by the payer or untaxed to the payee.
15% flat rate, period. No government meddling, no deductions.
I suppose some experts means people like Timothy Geitner and his ilk who are too important to pay taxes which they impose on the rest of us.
>> 15% flat rate, period. No government meddling, no deductions.
Works for me. Horrifies my CPA, though. :-)
I think they could actually do this, but they’ll target the rich. Class warfare is everything to the Dems.
It would go something like:
Outstanding Mortgage balance up to $100k - still deductible under the old rules, unchanged.
Balance of $101k - $200k - Reduce deduction by 30%
Balance of $201k - $400k - Reduce deduction by 50%
Balance of $401k and up - Your rich, no deduction for you!
Wouldn’t surprise me a bit.
Deductions are just privileges that can be revoked at any time.
I have never liked the mortgage tax deduction or many other tax deductions. However, the rats will take away deductions and not adjust tax rates, an effective tax increase. I prefer a simpler code with few or no deductions and lower rates. The rats do not see the tax code this way however. They see the tax code as a method to plunder the hard earned income and wealth of individuals so that they can reward their politically connected friends.
This group also includes the same people who find everything "unexpected".
But then, considering other deductions a tax payer may have, such as dependents, you start entering the AMT zone.
Take away the deduction, ie, raise taxes on those who are paying their mortgages,
and use that money and more to “help” those who AREN’T paying their mortgages.
Standard leftist MO - punish the responsible, reward the irresponsible.
Naturally this wouldn’t apply to MEMBERS OF CONGRESS!!!! After all, they pretty much HAVE to have two homes, so it just wouldn’t be FAIR!!! Watch this happen one day!!
The government didn’t ‘spend’ a dime on mortgage tax reductions. It’s our money to begin with.
IF this comes to pass:
1) It should be phased in, as with the tightening of deductablility of home equity loans which happened about 15 years ago.
2) The “standard deduction” should be proportionately decreased.
That is ok for salaried workers, but how do you handle small businesses? They have all kinds of scope for expenses, since you are only taxing profits.
The government didn't spend a penny.
Do that and the housing market will go from terminal to dead.
Given inflation and the increasing expense surrounding the maintenance involved in a home, many will decide just to rent.
Home ownership will become a thing of the past and people will either rent or live in government housing.
Which is what happens in all good socialistic or communist countries.
Well if Obama wants another policy based on black liberation theology, I believe he would push for this. The majority of home owners in the country are white, it would take more money away from them. Could always give targeted aid to non-whites. Don’t see a problem, Barry could do all that.
Tax wise, it would work for me but it would in the short term kill the real estate market.
If, and only if, we went to a flat tax with no deductions for anything, I’d agree.
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